Carvana Stock In Spotlight After 6% Slide Today: BTIG Maintains ‘Buy’ Rating
Synopsis
BTIG said that the company's September Asset-Backed Securities performance data for its closely-watched 2025-N1 issuance has shown signs of improvement.
Carvana (CVNA) stock was one of the top trending tickers on Stocktwits after the company’s shares fell nearly 6% in afternoon trading, with recent bankruptcies of subprime lender Tricolor and auto supplier First Brands Group putting the focus on auto-related firms.
BTIG maintained a ‘Buy’ rating and $450 price target on Carvana, according to TheFly. The firm noted that the company's September Asset-Backed Securities performance data for its closely-watched 2025-N1 issuance has shown signs of improvement as the pace of cumulative net loss development slowed and 30- and 60-day delinquencies declined.
The firm said that while it sees the September numbers as "incrementally reassuring", the environment remains dynamic. Last week, BTIG had said that with the bankruptcy of Tricolor and CarMax adding more reserves to its loan portfolio, general macro concerns have brought renewed interest in Carvana's financing exposure.
Retail sentiment on Carvana dipped to ‘bearish’ from ‘neutral’ territory compared to a day ago, with message volumes at ‘normal’ levels, according to Stocktwits data.
Auto supplier First Brands Group, which went bankrupt in late September, has seen its creditors open probes amid concerns over potential financial irregularities.
BTIG had further noted last week that it does not believe Carvana will lose access to the securitization markets regardless of whether past securitizations experience impairment to their equity tranche. While the firm is closely following credit across consumers, it continues to see the company's fundamental value drivers as intact, it said.
Shares of Carvana have gained 60% this year and have jumped over 71% in the last 12 months.
Get updates to this developing story directly on Stocktwits.<
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
Stay updated with all the latest Business News, including market trends, Share Market News, stock updates, taxation, IPOs, banking, finance, real estate, savings, and investments. Track daily Gold Price changes, updates on DA Hike, and the latest developments on the 8th Pay Commission. Get in-depth analysis, expert opinions, and real-time updates to make informed financial decisions. Download the Asianet News Official App from the Android Play Store and iPhone App Store to stay ahead in business.