Wedbush unsure if Carvana survives liquidity issues

Wedbush analyst Seth Basham kept an Underperform rating and $1 price target on Carvana. The analyst noted that Carvana’s "ill-timed" acquisition of Adesa’s U.S. physical auction business earlier this year is "an albatross around its neck." Adding that to "deteriorating industry and company-specific outlooks," and the analyst sees Carvana’s committed liquidity resources running out by early 2024. Basham would not be surprised to see some form of cash infusion in the coming months to at least delay that, but is not sure if that would be "enough for Carvana’s equity to survive — let alone thrive — well into the future," given the deteriorating fundamentals.