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4w ago

Carvana Stock Rises After Morgan Stanley Upgrades to 'Overweight'

Analysts cite Carvana's operational efficiencies and potential to dominate auto retail as the stock gains over 4% following a price target increase to $280.

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Overview

  • Morgan Stanley upgraded Carvana's stock from 'Equal-Weight' to 'Overweight,' raising the price target from $260 to $280.
  • Carvana's stock climbed over 4% on Tuesday, trading at $222.68 after the upgrade, marking a recovery following a recent 12% pullback.
  • Analysts highlighted Carvana's strong Q4 performance, including a 50% year-over-year increase in vehicle sales and a 46% revenue jump.
  • Morgan Stanley emphasized Carvana's competitive advantages, including vertical integration and fulfillment infrastructure, dubbing it a potential 'Amazon of auto retail.'
  • Carvana's leverage ratio has improved, aligning with industry peers, enabling self-financing and debt reduction alongside sustained profitability.