SFT - Carvana Shift Tech stocks skid as Wells Fargo downgrades on macro headwinds

Carvana (NYSE:CVNA) and Shift Technologies (SFT) traded lower after Wells Fargo downgraded both car retailers' stocks, citing macro headwinds. "... recent evidence suggests that macro headwinds are building, access to capital is dwindling, and appetite for high-growth free cash flow negative companies is becoming increasingly scarce," analyst Zachary Fadem wrote in a note to clients. Wells Fargo downgraded CVNA to Equal Weight from Overweight and slashed its price target to $65 from $150, implying a potential 7.5% upside to its last close.  Fadem said the downgrade was due to "unfavorable" financing terms to fund the ADESA acquisition, which will inevitably delay the path to positive free cash flow to FY24 at best. "Near-term macro concerns are mounting and the dynamics around rising rates, elevated used vehicle prices and waning consumer demand drive increasingly difficult near-term visibility," he added. Meanwhile, Wells Fargo downgraded SFT to Equal Weight from Overweight and cut its PT to

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Carvana, Shift Tech stocks skid as Wells Fargo downgrades on macro headwinds