Is Carvana Stock Really "Grossly Undervalued"?
Shares of used-car e-commerce company Carvana (NYSE: CVNA) are down more than 90% from their all-time highs in 2021. However, at $26 per share as of this writing, its collapse hasn't gone unnoticed. Piper Sandler analyst Alexander Potter believes the stock is "grossly undervalued."
According to The Fly, Potter gave Carvana stock a price target of $73 per share earlier this month, suggesting around 180% upside. This makes Carvana look like a no-brainer buy. However, Potter also said that "bankruptcy is a real possibility." These comments vividly illustrate the wildly divergent possibilities with a Carvana investment today. And investors should consider both bullish and bearish opinions before buying the stock.
Carvana buys and sells cars by leveraging the power of e-commerce. Consumers can go to one of its select vending-machine locations. But many choose to shop online and have vehicles conveniently delivered.
Source Fool.com
