Morgan Stanley Upgrades Carvana to Overweight with $450 Price Target

Morgan Stanley has assumed coverage of Carvana with an Overweight rating and a price target of $450, up from $290. The firm expects greater acceleration in market share gains and credits Carvana's management team for delivering strong operating results ahead of expectations.

Morgan Stanley has assumed coverage of Carvana (NYSE: CVNA) with an Overweight rating and a price target of $450, up from $290. The firm expects greater acceleration in market share gains and credits Carvana's management team for delivering strong operating results ahead of expectations [1].

The latest earnings report showed Carvana reporting an EPS of $1.28 for the recent quarter, exceeding expectations and reflecting a year-over-year revenue increase of 41.9% [1]. The company's stock has seen increased institutional investment, with Blair William & Co. IL boosting its stake by 8.7% in the first quarter [1]. Additionally, several other institutional investors, such as Versant Capital Management Inc and Aster Capital Management DIFC Ltd, have also increased their holdings in Carvana [1].

Morgan Stanley's upgrade comes amidst positive analyst sentiment. Citigroup, Wells Fargo, and Needham & Company have all recently issued positive ratings and price targets for Carvana [1]. The consensus price target among analysts is $379.65, with a majority rating of "Moderate Buy" [1].

Carvana's recent performance and strategic initiatives, such as the expansion of its Fulfillment Hub, have contributed to the positive outlook. The company's new hub in Delafield, Wisconsin, aims to serve as a last-mile delivery facility for pre-owned vehicles purchased online [2]. This strategic move is expected to enhance Carvana's operational efficiency and customer experience.

Investors should closely monitor Carvana's future earnings reports and market share gains to assess the validity of Morgan Stanley's optimistic projections. The company's strong earnings and strategic initiatives position it well to capitalize on the growing used car market.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-carvana-co-nysecvna-shares-purchased-by-blair-william-co-il-2025-08-06/
[2] https://www.gmtoday.com/the_freeman/news/carvana-fulfillment-hub-approved-at-tuesday-town-of-delafield-plan-commission-meeting/article_56271152-8468-58a2-bca3-a2a05c80c00d.html