CVNA - Carvana Stock Is Down 98% Year to Date but Wedbush Predicts That Things Will Only Get Worse From Here
Carvana Stock ( NYSE:CVNA )
Carvana ( NYSE:CVNA ) was assigned an Underperform rating by the experts at Wedbush, and they projected that the Carvana stock would reach $1 a share .
Carvana stock has suffered a stunning decline in 2022, with shares selling roughly 98 percent lower year-to-date than they were at the beginning of the year (YTD). At the beginning of this month, many rumors in the media indicated that Carvana could be heading for bankruptcy.
Even while the experts claim that the used vehicle shop is not expected to file for bankruptcy in the near future, they feel that things will only get worse from here on out. The experts cut their forecasts even further. They now anticipate selling 85,000 units in the fourth quarter, which is lower than their previous estimate of 94 thousand units and the consensus estimate of 96 thousand units.
Wedbush made the modifications to Carvana’s model after the analysts integrated recent data points, such as the results of the F3Q that CarMax (NYSE:KMX) reported only the previous week.
“There is nowhere to hide since used vehicle prices are expected to continue falling, maybe at a faster rate. CVNA began the quarter with 87 days of inventory, and our web-scraped data indicates that figure has unfavorably increased as CVNA’s sales have floundered further and inventory units for sale have only modestly decreased. This is not a good sign for the company’s future, “they explained in a note to the customer.
“We continue to think that CVNA should attempt to leverage its unencumbered real est...
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