TEMPE, AZ — Morgan Stanley analysts upgraded Carvana’s stock to an overweight rating, stating the Tempe-based company holds the potential to become the “Amazon of auto retail.”
Morgan Stanley analyst Adam Jonas on Tuesday raised his price target for Carvana (NYSE: CVNA) from $260 to $280, citing the e-commerce used car retailer's profitable growth and improved balance sheet.
Carvana generated $3.5 billion in the fourth quarter and reported an all-time high adjusted EBITDA — or earnings before interest, taxes, depreciation and amortization — of $359 million, an increase from adjusted EBITDA of $60 million in Q4 2023, according to a regulatory filing.
“Carvana's performance is particularly impressive when compared to its auto retailing peers who have struggled to grow used volumes this year,” Jonas wrote in the note to investors.
