Carvana (CVNA) is advancing 3% after JPMorgan increased its price target on the shares to $350, representing the highest target on the Street.

Why JPMorgan Hiked Its Price Target

JPMorgan analyst Rajat Gupta raised his price target on CVNA to $350 from $300 while keeping an Overweight rating on the name.

A customer buying a used car with the help of a finance specialist.

Asserting that the company's balance sheet is strong, Gupta believes that its unique emphasis on online sales has enabled it to stand out among its peers, while boosting its top and bottom lines. Moreover, the analyst expects the Street's average estimates for the firm to climb this year, and he thinks that the multiple of CVNA stock can rise going forward.

Gupta wrote the note after conducting a thorough overview of Carvana's business.

Another Bank Upgraded CVNA This Month

On Jan. 7, RBC Capital hiked its rating on CVNA to Outperform from Sector Perform. As reasons for the upgrade, the bank cited the stock's recent decline and its belief that the company could sell more vehicles than expected. It placed a $280 price target on the shares.

The Recent Price Action of CVNA Stock

In the last month, the shares have jumped 41%, while they are up 9% in the last three months.

While we acknowledge the potential of CVNA, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CVNA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ ALSO 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

Disclosure: None. This article is originally published at Insider Monkey.