Carvana Co. (NYSE:CVNA) shares are trading higher Friday after RBC Capital upgraded the stock from Underperform to Sector Perform and raised its price target from $45 to $90.
The Details:
RBC Capital analyst Brad Erickson said the bear case for the stock has become "increasingly unprovable," and Carvana's recent rally has the potential to continue even higher. The analyst sees any meaningful unit growth leading to higher price gains, due in part to the outsized short-interest in the stock. According to data from Benzinga Pro, 41.86% of Carvana shares are being sold short.
Erickson also noted Carvana's cash generation may be better than investors realize, and the company may be able to favorably refinance debt as the company's liquidity improves.
Carvana stock has gained nearly 70% over the ...