Wedbush believes this used car seller could be a market leader by next year

Wedbush now has more conviction when it comes to Carvana going forward. The investment firm upgraded the online used-car dealership to an outperform rating from neutral. Analyst Scott Devitt also raised his 12-month price target to $400 from $380, implying a gain of about 29% from Friday's close. While shares of Carvana have surged 52% this year, Devitt pointed to its 13% sell-off in the last month as a catalyst for the stock. He attributed this reaction mainly to "underwhelming near-term performance" from CarMax, its "closest peer," alongside broader rising concerns within the credit markets. CVNA YTD mountain CVNA YTD chart "We believe the recent pullback in shares is overdone, and investors should take advantage of this period of relative weakness," he wrote. "We think the risk/reward i