Carvana could stand to regain some of its lost share value despite current headwinds and bankruptcy fears, according to Citi.
He set a price target of $5.50, which reflects a 11.1% upside over Monday's closing price.
Josey said Carvana currently accounts for just over 1% of used car sales, but the company would be positioned to generate share gains in a typical used car market.
But in the near-term, he said "the combination of higher interest rates, declining used vehicle prices (after rising significantly from 2020 – present), limited new vehicle supply, and a weaker economic backdrop have created a challenging operating environment."
Going forward, Josey said he will be watching the used car retailer's relationship with Ally, which is its primary funding partner, and Adesa, a used car auction it acquired.