Nov. 7 at 8:03 PM
$CVNA $JPM $KMX Gupta, are you there?
A few weeks back, JPM posted a read through from Tricolor to CVNA, essentially saying there is no reason for concern.
While doing so, they pointed out that CVNA’s average FICO score is 571, far worse than Tricolor’s 608 and also worse than subprime lender Exeter at 576.
JPM also pointed out that smallcap sub-prime peer America’s Carmart (CRMT) has been performing just fine… meanwhile
$CRMT has had to withdraw previously issued financial statements due to omissions in “disclosure related to loan modifications made to borrowers experiencing financial difficulty” among other things. CRMT is facing litigation and it’s share price is down a cool 65% since July…
JPM's Rajat Gupta has since raised their PT on CVNA up to a
$490 target price…
