Investment Bank RBC Raises Price Target for Carvana, Sparking 13% Surge in Stock Price
RBC removes sell rating on Carvana
Investment bank RBC Capital Markets just doubled its price target on Carvana shares to $90 per share, and removed its sell rating on the stock, rerating the stock "sector perform." Markets responded immediately -- and Carvana stock is up 13.1% through 10:55 a.m. ET.
Is Carvana stock a buy?
Given the risk of a snowball effect on short positions, RBC concludes that continuing to short Carvana stock will be "infeasible" given positive profit projections. With Carvana expected to generate significant free cash flow, selling Carvana stock short may be too risky.
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