shares of carvana co cvna were surging more than 9 in premarket trading tuesday after jpmorgan analyst rajat gupta ended his bearish call on the usedcar retailer upgrading the stock to neutral from underweight gupta wrote that carvana was not out of the woods but that risks around the name seem better understood he noted that carvana shares have lost half their value since the close of sept 28 right before peer carmax inc kmx posted its own results worsening auto credit data points are clearly going to hurt cvnas new loan origination margins as lenders have become more competitive most recently reinforced by cof cof  or likely come as the expense of volume in order maintain a quality book he wrote that said unlike kmx cvna is not on the hook only partially for increasing chargeoffs on prior originations and unlikely to suffer from the degree of writedown risk as kmx gupta added that a reset in fundamentals is needed to make investors reengage with carvanas stock while a credit cycle could drive further downside to equity value that said after the array of negative news over the last month and continued underperformance vs our broader coverage he is taking a more neutral view carvana shares have declined 96 over the past 12 months as the sp 500 spx has lost 18