Cramer advises Carvana buyers lock in beneficial properties after dueling analyst calls
CNBC’s Jim Cramer advised Carvana shareholders Thursday to lock in profits after a big surge in the stock.
“I still think Carvana is a great long-term story, and I would never recommend short selling the stock. But if you’ve owned her for this great run, maybe … take something off the table as the used car sales are showing signs . ” the slowdown in price increases, “he said on” Mad Money “.
“Carvanas [stock has] are coming back lately, but this is the rare, turbo-charged growth name that’s actually kind of hostage to the wider economy, “he added.
The comments come a day after Carvana, an online used car marketplace, was the target of conflicting analyst recommendations.
In a statement on Tuesday, investment bank Jefferies maintained its buy rating and raised its price target on Carvana shares from $ 375 to $ 400. Jefferies noted a low supply of used cars across the industry and high demand. Meanwhile, JPMorgan downgraded the stock from overweight to neutral, but kept its price target at $ 325 per share.
Carvana stock closed at $ 304.51 on Thursday, up 43% from its 2021 low of $ 219.40 in May. Shares peaked at $ 323.39 after rebounding from less than $ 30 apiece at the start of Covid-19 lockdowns in the US last year.
“I’m leaning towards JP Morgan’s suddenly bearish perspective, in part because it looks more forward-looking than Jefferies’ more bullish analysis,” said Cramer.
“If you look closely at the Jefferies [data]”It looks like April was better than May, which was better than June,” he continued. “It’s called cadence, and the quarter’s cadence is going in the wrong direction. That’s in line with what I’ve heard from the rest of the industry. “