Piper Sandler analyst Alexander Potter last night downgraded Carvana to Neutral from Overweight with a price target of $48, up from $29. The company’s Q2 results “overachieved on nearly every metric,” and the restructuring agreement encompassing 90% of its outstanding debt alleviated much of the going concern risk, the analyst tells investors in a research note. However, a higher valuation for Carvana would require changes to Piper’s long-term volume outlook, says the analyst. While recent operational improvements provides greater confidence in the company’s ability to reach consistent profitability, they do not warrant a change to the long-term used vehicle market share expectations, contends Piper. It downgrades the shares following the 20% rally on the Q2 results.