rbc capital analyst brad erickson downgraded carvana co cvna from sector perform to underperform and raised the price target from 9 to 30 cvnas better q2 results debt restructuring  newly enabled access to equity capital again reduced liquidity risks  a big positive for the stock the analyst believes longterm margin improvements are likely well and overly appreciated a faster potentially marginstalling return to growth is probably necessary to cover debt costs and significant dilution  expanding debt load postrestructure are likely coming the analyst raised the estimates and targets given better nearterm performance  lower liquidity risks raymond james mitch ingles maintained a market perform the rerating followed carvanas 2q23 earnings results conference and followup calls he raised his forecast to reflect carvanas 2q23 adjusted ebitda beat and outlook for adjusted ebitda to remain positive in 3q in addition cvna announced a debt restructuring deal that could eliminate 12 billion or 18 of total existing debt reflecting a positive step towards fulfilling debt obligations currently estimated at 594 million for 2023 overall cvna has demonstrated flexibility in managing their balance sheet and corporate overhead however he remains neutral due to shares up 550 over the prior three months accurately reflecting the improvement in cvnas performance and is concerned that industrywide challenges such as affordability issues could weigh down on cvnas recovery over the next twelve months wedbush analyst seth basham maintained carvana an underperform and raised the price target from 1 to 40 cvna reported 2q23 results that were well above expectations on adjusted gpu and ebitda guided to positive 3q23 adjusted ebitda and announced a transaction support agreement tsa with unsecured bondholders the analyst sees most of the upside in ebitda as unstainable due to transitory benefits from selling backlogged loan sales and favorable market pricing dynamics moreover when cvna attempts to grow unit sales retail gpu efficiency benefits from scale in reconditioning and logistics will likely be offset by less advantageous sourcing assuming consistent retail unit sales rates in the 76k range and seeing limited additional sga cut opportunities sga per unit is nearly 5000 that leaves a business generating a little over 100 in adjusted ebitda per unit and only 100 million of annual adjusted ebitda against capex of at least 100 million and cash interest expense of 180 million after the debt restructuring meaning material cash burn will persist price action cvna shares are trading lower by 1610 at 4684 on the last check thursday