Carvana stock rises 4.8% due to analyst upgrades

Carvana's stock is experiencing significant gains today due to positive analyst ratings. As of 2:15 p.m. ET, the stock rose by 4.8%, having peaked at 11.7% earlier in the day. Piper Sandler, a financial services firm, upgraded Carvana's stock rating from neutral to overweight. They believe the stock is now a good buy after recent price drops. Their one-year price target remains at $225 per share, suggesting a potential increase of about 22%. The analysts at Piper Sandler also predict that Carvana will face only minor challenges from new tariffs. They expect demand to stay steady, even with changes in the economy. The firm projects that Carvana will maintain annual sales growth of over 20% for several years while also improving its earnings. Meanwhile, Bank of America addressed concerns about Amazon entering the used-car market. They believe that Amazon's presence will not hurt Carvana significantly. Analysts think that Amazon will not enter the vehicle delivery or reconditioning aspects right away, which are crucial to Carvana's business model. In the long run, they suggest that Amazon Auto could actually help online car sales, benefiting Carvana and similar companies.