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
€61.96
1.130%
With 57 Buy predictions and not a single Sell prediction Carvana Co. is an absolute favorite of our community.
As a result the target price of 81 € shows a positive potential of 30.73% compared to the current price of 61.96 € for Carvana Co..
