Investing.com -- Piper Sandler upgraded Carvana (NYSE:CVNA) and ACV Auctions to Overweight, citing strong growth potential in the used vehicle technology sector despite macro uncertainty and tariff concerns. 

The firm maintains its $225 price target for Carvana and raises its ACV target to $20 from $18, expecting both stocks to deliver multi-year revenue CAGR of over 20% with even faster earnings growth.

“We favor used vehicle technology stocks like CVNA and ACVA,” said the firm.

"Most used car transactions don’t span international borders, and demand is relatively stable, regardless of the macro," Piper Sandler analysts wrote. "Additionally, staid business models and extreme fragmentation have left the door open to disruptors." 

Given these factors and recent stock selloffs, the firm sees an attractive entry point for investors.

Meanwhile, Piper Sandler downgraded Stellantis (NYSE:STLA) and Rivian (NASDAQ:RIVN) to Neutral, citing "too much political uncertainty" in the auto manufacturing supply chain. 

"If the companies themselves don’t know where—or whether—to deploy capital, then we don’t think investors should, either," the analysts wrote. The firm has cut its price target for both stocks to $13, down from $23 for Stellantis and $19 for Rivian.

On the electric vehicle (EV) market, Piper Sandler believes the bearish sentiment has gone too far, particularly in Europe, where sales are poised to re-accelerate. 

"Electric vehicles are still a superior product, in our view, and eventually, we think Western regions will come to resemble China (where EVs never stopped trending toward 100%)," the analysts noted.

Piper Sandler reiterated its Overweight rating on Tesla (NASDAQ:TSLA) despite recent volatility. The firm cut its 2025 delivery expectations and lowered its price target to $450 from $500 but sees long-term value. 

"At ~$234/sh, we think TSLA is cheap based solely on Autos+Energy+FSD," the analysts concluded.

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