JP Morgan Reiterates Overweight Rating on Carvana.

Carvana’s turnaround appears to be on solid footing, and it will be hard for competitors to catch up, according to JPMorgan.

Analyst Rajat Gupta reiterated an overweight rating on the used car dealer stock, saying that a recent tour of a California facility bolstered confidence about the company.

“We believe CVNA’s competitive moat continues to widen in the used car space, with operating leaders well aligned on importance of continuous improvement, and more importantly, long-term vision and culture, that should bode well for the company’s performance during periods of market volatility in the future,” the note said.

Carvana appears to be on the verge of bankruptcy last year but has since rebounded. JPMorgan sees the company’s business plan as sustainable.

“The business has been designed to be scalable and adaptable/flexible, and this has led to significant efficiency improvements, reducing cycle times and increasing throughput,” the note said.

JPMorgan has a $150 price target on Carvana, which is more than 18% above where the stock closed Wednesday.

Carvana shares gained 4.1% in morning trading.