shares of carvana co cvna were off 3 in premarket trading tuesday after wells fargo analyst zachary fadem downgraded the stock to equalweight from overweight in the wake of an ugly earnings report in late april and new updates on financing for the companys pending acquisition of adesas us physical auction business while we believe cvna is still on a longterm path to becoming the largest most profitable used car retailer in this country the nearterm road is proving much less linear than we initially thought he wrote in a note to clients simply put we underappreciated the impact of a sharply changing macro which likely overshadows our expectations for rebounding fundamentals post q1and a path to gradually improving unit economics fadem wrote that while he saw sound strategic rationale for carvanas pending adesa deal the associated leverage on carvanas balance sheet is difficult to ignore fadem said that he thought investors would applaud carvana if it opted to move away from the aseda deal but he deems such a decision unlikely at this point fadem cut his price target on the stock to 65 from 150 he also downgraded shares of shift technologies inc sft to equalweight from overweight writing that macro headwinds are building capital needs wont come easy and investor appetite for high growth fcfnegative companies is likely to remain low shares of carvana have dropped 59 over the past three months as shift technologies shares have lost 28 the sp 500 spx is off about 7 in that span