Analyst Adam Jonas downgraded shares to underweight from equal weight in a Wednesday note.
And while he raised his price target to $35 from $12, the new price target implies 20% downside from Wednesday's close. "A second chance for success [is] discounted in the price," said Jonas. "We think much of the rally is deserved, but the stock has run well above our increased target driving a less favorable risk-reward vs. our coverage.
He cited ongoing challenges regarding the used car consumer base and whether the company's business model remains viable over the long-term. "Even considering our expectation of continued recovery in the business and less bearish views on the used car market, the stock's reward-skew and 20% downside to PT move us to UW," Jonas said." Piper Sandler and RBC also lowered their rating on the stock last week, also noting that improvements have already been priced into shares.
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