: Carvana's challenges 'unlikely to abate' in the near term, analyst says in downgrade #FinanceUSA #StockMarketNEWS Oppenheimer analyst Brian Nagel weighed in with a more cautious take on Carvana

@stockMarketNEWS Wed 16 Nov, 2022

Posted in: #FinanceUSA #StockMarketNEWS

Carvana's challenges 'unlikely to abate' in the near term, analyst says in downgrade #FinanceUSA #StockMarketNEWS
Oppenheimer analyst Brian Nagel weighed in with a more cautious take on Carvana Co. Tuesday, downgrading the stock to perform from outperform on his belief that near-term challenges for the used-car retailer were "unlikely to abate." In his view, "significant nearer-term operational and financial risks for Carvana have emerged and are likely to cloud the CVNA investment story for the foreseeable future." Nagel expects that Carvana will need more than billion in additional capital through 2025: "We do not envision investors bidding CVNA meaningfully higher until prospects for a manageable and sustained capital base become clearer." That said, he likes the company's longer-term opportunity, saying that Carvana "represents one of the most innovative omni-channel operators we have studied and a significant disruptor within the still-fragmented and inefficient market for sales of pre-owned vehicles." Shares of Carvana were up more than 7% in premarket trading despite the downgrade. They declined 18% in Monday's session and have been taking big daily swings throughout November.

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