Morgan Stanley Upgrades Carvana (CVNA) to Overweight

Morgan Stanley analyst Adam Jonas upgraded Carvana (NYSE: CVNA) from Equalweight to Overweight with a price target of $280.00 (from $260.00).

The analyst comments "A sharp pull-back in the share price offers a unique opportunity for investors to gain exposure to a leader in auto retail and fleet fulfillment. Recent IRC visit reinforced the company's competitive advantages. Upgrade to OW with >30% upside to $280 target and 90% upside to $400 bull case. With our upgrade to Equal-weight in November, we acknowledged the remarkable improvement in Carvana's fundamentals but called out key risks in sustaining growth and margin, high leverage on the balance sheet, and the state of US auto credit/ABS market availability. While Carvana remains more exposed to a lower strata of auto credit relative to the rest of our auto coverage, the company has demonstrated execution with profitable growth and addressed leverage concerns."

For an analyst ratings summary and ratings history on Carvana click here. For more ratings news on Carvana click here.

Shares of Carvana closed at $213.63 yesterday.

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