Carvana Stock Is Cruising Higher Monday: What's Going On?

Carvana Co CVNA shares are trading higher Monday following positive analyst coverage from JPMorgan. 

What Happened: JPMorgan analyst Rajat Gupta upgraded Carvana from an Underweight rating to a Neutral rating and raised the price target from $25 to $40.

Carvana shares have rallied more than 750% since the start of the year as the company continues to focus on turnaround efforts. The used car retailer was up against financing concerns and even potential bankruptcy at the end of 2022 before staging a turnaround. 

Earlier this year, Carvana inked a beneficial debt restructuring agreement to slash about $1.3 billion in debt. The company has continued to cut losses and exceed analyst expectations in recent quarters, which has helped the stock maintain its upward trajectory. 

Of all the analysts that cover Carvana, two have positive ratings, 13 have neutral ratings and five have negative ratings, with an average price target of $22.57, according to Benzinga data.

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CVNA Price Action: Carvana shares were up 16.1% at $40.83 at the time of publication, according to Benzinga Pro.

Photo: Tony Webster from Flickr.