Carvana reverses course to trade up

Vroom

09/12/2022 16:59

(Updates)
    ** Shares of used-car retailer Carvana Co  CVNA.N  reverse
course, last up 13% at $5.64
        ** Some meme stock investors have made healthy profits
placing bets on companies that filed for bankruptcy protection
like Revlon Inc  urn:newsml:reuters.com:*:nL8N2YB0GE
  
        ** The Wall Street Journal reported that investors are
frustrated at how executives handled Carvana's downturn and are
anxious about being pushed aside in a restructuring
  
        ** In premarket trading, stock fell 10%
  
        ** Jefferies halved PT to $5 on potential Carvana
restructuring and continued soft demand due to worsening
affordability on rising rates and elevated prices
  
        ** Brokerage sees demand under pressure until prices
decline enough to offset the impact on affordability from rising
rates; also cuts PT for online used-car seller Vroom  VRM.O 
  
        ** Needham also downgrades CVNA to "hold" from "buy",
citing low confidence in the company's turnaround plans and says
it doesn't see a long-term solution
  
    ** Carvana shares rebounded in the previous session, rising
nearly 30%, after sinking to a new low on Wednesday on a
Bloomberg report the co was speaking with lawyers and investment
bankers about options for managing its debt load
 (Reporting by Priyamvada C and Amruta Khandekar in Bengaluru)
 ((Priyamvada.c@thomsonreuters.com))