Oppenheimer was the latest firm to turn cautious on Carvana Co. ( NYSE: CVNA ) with a downgrade on Tuesday to a Perform rating from Outperform.
Analyst Brian Nagel and team said they have grown increasingly concerned about CVNA's near-term prospects.
"We remain optimistic about longer-term prospects for CVNA and the company’s shares. That said, significant nearer-term operational and financial risks for Carvana have emerged and are likely to cloud the CVNA investment story for the foreseeable future."
Carvana ( CVNA ) is seen generating Nagel an adjusted EBITDA loss of $998M in 2022 and a loss of $303M in 2024 before turning to a profit in 2025.
Looking further down the road, Carvana ( CVNA ) is said to still represent an innovative omni-channel disruptor, but is noted to be moving within a fragmented and inefficient market focused on pre-owned vehicles that can be hard to perform well in.
Read the latest breakdowns on Carvana from Seeking Alpha authors.
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Carvana loses bull rating at Oppenheimer due to near-term headwinds