JPMorgan Sticks With Outperform Call on Carvana Despite Short-Seller Report | Global News Avenue

caravan(Vascular Neural Network Analyzer) Share prices continued to fall on Friday short selling Hindenburg Research Corporation declare short position But JPMorgan analysts are sticking with their “overweight” rating on the used-car retailer.

JPMorgan wrote on Friday that its research on Carvana “did not raise any red flags” for the company.

Hindenburg report was a wake-up call for the company gross profit Practices per unit and sales to consumers car loan to third parties. Specifically, the hedge fund claimed to have uncovered $800 million in loan sales to unidentified “related third parties,” and said nearly 26% of the company’s gross profits over the past nine months came from such loan sales.

JPMorgan doesn’t think Carvana report is ‘exaggerated’

JPMorgan said in a note that “there is room for CVNA to provide more disclosures,” but flagged issues surrounding auto industry lending default value It’s nothing new, and demand for used cars remains strong.

“We do not believe the economic data reported by CVNA are exaggerated,” the analysts added.

Carvana shares rose nearly 5% intraday Friday after falling about 2% on Thursday. However, by 2024, the company’s share price has almost quadrupled – following Bankruptcy Concerns in previous years hurt the company’s stock price.