Carvana Gets an Upgrade. The Used Car Retailer’s Stock Is Surging.

Carvana

stock surged 13% in premarket trading Tuesday after

JPMorgan

upgraded the shares to neutral, ending a bearish call on the used car retailer.

The company (ticker: CVNA) is “not out of the woods yet” as used car fundamentals remain weak, JPMorgan’s Rajat Gupta said in a note Tuesday, but added that “risks seem better understood.” He has a price target of $20 on the stock, implying a 68% upside to Monday’s closing price.