Carvana stock rises 9% as analysts defend against critical report

Carvana's stock rose 9% this week after analysts defended the company against a critical report from short-seller Hindenburg Research. The report accused Carvana of questionable accounting practices, but analysts from Needham and JPMorgan reaffirmed their buy ratings. Following the report, RBC Capital and Citigroup also upgraded their recommendations for Carvana. Analysts noted the company's effective inventory expansion in response to market demands, contrasting with Hindenburg's claims. Despite the stock's recovery, analysts caution that Carvana operates in a challenging market and remains a volatile investment.