Bank of America upgrades Carvana, says it has the inventory to meet booming demand for used cars

Customers inspect a Fiat Chrysler Automobiles NC Dodge Grand Caravan minivan at a Carvana Co. location in Westminster, California, U.S., on Thursday, May 28, 2020.
Patrick T. Fallon | Bloomberg | Getty Images

Carvana is well-positioned to benefit from a growing shortage of used cars in the United States, according to Bank of America.

BofA analyst Nate Schindler upgraded the retailer's stock to buy from neutral on Monday, citing the company's inventory as a plus. Used car supply is tight and prices are jumping in the United States after the pandemic created growing auto demand even as the virus and semiconductor shortage held back production of new cars.

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