Carvana Stock Surges Following Morgan Stanley Upgrade

The online auto retailer is gaining momentum as analysts highlight its profitability, operational efficiencies, and potential to dominate the used-car market.

Morgan Stanley upgraded Carvana's stock rating to 'Overweight' and raised its price target to $280, citing improved financial stability and growth potential.
Carvana's stock rose nearly 4% on Tuesday, extending a five-day rally and marking a 150% year-over-year increase in value.
Analysts view the recent pullback in Carvana's stock price as a unique buying opportunity for investors seeking exposure to a leader in auto retail.
Carvana's operational efficiencies, vertical integration, and fulfillment infrastructure are seen as key advantages positioning it as a potential 'Amazon of auto retail.'
The company reported record-breaking earnings, with significant growth in retail unit sales and achieving the highest adjusted EBITDA margin among public automotive retailers in U.S. history.