(Bloomberg) — Carvana Co. shares plunged to the lowest in more than five years after a Morgan Stanley analyst pulled his rating on the auto retailer and said the stock could be worth as little as $1.
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The deteriorating used-car market and volatile interest-rate and funding environment “add material risk to the outlook,” Morgan Stanley’s Adam Jonas said in a note Friday after Carvana reported quarterly results that missed estimates. He pulled his $68 price target and said his new base case is that the company may be worth $1 to $40 a share.
Carvana declined as much as 39% to $8.69 in New York trading, the lowest intraday price since May 2017. Jonas had a $430 price target for the stock as of early March and rated it the equivalent of a buy in early May.
The shares traded as high as $376.83 intraday in August of last year.
–With assistance from Subrat Patnaik.
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