Carvana Co. shares dropped 18% to $25 on Tuesday following a price target cut from Stifel.
Stifel lowered its price target to $34 per share from $48 per share while maintaining a hold rating, analysts said.
Last week, Barron's reported that the online used-car dealer is struggling to match its pandemic-era sales pace because it is delayed in registering cars for its customers. Carvana said the delays involved internal paperwork problems, and slow work by third-party registration services and state motor vehicle agencies.
Shares were 89% lower for the year.
Write to Kathryn Hardison at kathryn.hardison@wsj.com
Carvana Co. is a holding company. The Company operates an e-commerce platform for buying and selling used cars. On the Company's platform, consumers can research and identify a vehicle, inspect it using its 360-degree vehicle imaging technology, obtain financing and warranty coverage, purchase the vehicle, and schedule delivery or pick-up, all from their desktop or mobile devices. It also provides automated vehicle valuations for buying vehicles from customers with or without a retail purchase, automated financing, vehicle service contracts (VSC), auto insurance, GAP waiver coverage, limited warranty, and other ancillary products. It offers pick-up and delivery options, including pick-up at its vending machines or hubs, and as soon as same day deliveries, depending on the market. The Company's in-house customer advocates are available to answer customer questions that arise throughout the process.