Why Carvana Stock Was Rallying Again Today
Shares of online used car dealer Carvana (NYSE: CVNA) were jumping double digits for the second time this week. This time the catalyst was a credit rating upgrade by S Global on some Carvana-sponsored securitizations.
As a result, Carvana stock was up 18.3% as of noon ET.
Loan securitization is a key part of Carvana's business model as it tends to sell the auto loans it makes to customers, rather than keeping them on its books. A wave of defaults in auto loans, therefore, could be potentially devastating for Carvana, but the S is saying that, instead, the opposite is happening. It overestimated the losses Carvana and its partners would take on its loans, and is raising its ratings accordingly.
Source Fool.com
Carvana Co. Stock
€123.16
5.680%
Based on 7 Buy predictions and 6 Sell predictions the sentiment towards Carvana Co. is rather balanced.
On the other hand, the target price of 41 € is below the current price of 123.16 € for Carvana Co., so the potential is actually -66.71%.
