According to Piper Sandler, Carvana’s recent bull run may be coming to an end. The company’s shares jumped more than 20% this week after Carvana posted better-than-expected second-quarter results and a debt restructuring agreement of about $5.2 billion on Wednesday. However, Piper Sandler’s long-term outlook for the company’s share of the used car market remains unchanged. Analyst Alexander Potter downgraded the stock to neutral due to overweight. Although he has increased his price target to $48 from $29, his new price target is below $2, or just 2.7% above Thursday’s closing stock price. “We upgraded CVNA last September on the basis that the company was trading at a substantial discount to intrinsic value due to bankruptcy risk – which we thought was unlikely. Now that bankruptcy fears have subsided and the stock has risen to $47, we believe CVNA is approaching a fair valuation,” Potter wrote in a Thursday note. “Pursuing the stock higher will require an upward adjustment to CVNA’s long-term used-vehicle market share expectations, which we do not believe the recent results are warranted,” Potter added. Potter noted that “it remains to be seen” whether the company can maintain cost discipline with higher volumes. Unstable vehicle prices, regulatory changes, macro shocks and high capital intensity are among the other downside risks to corporate growth that the analyst mentioned. Potter isn’t the only analyst to downgrade Carvana this week. RBC’s Brad Erickson downgraded his rating on the stock to underperforming the industry, noting that any longer-term earnings improvement could be priced in at this point. Shares were down 0.7% before marketing on Friday after falling more than 16% in Thursday trading. Shares are still up more than 880% year-to-date. CVNA YTD climbing CVNA in 2023 — CNBC’s Michael Bloom contributed reporting.