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On Wednesday, Morgan Stanley (NYSE:MS) analysts increased their price target for Carvana shares (NYSE:CVNA) to $290 from the previous $280, while retaining an Overweight rating on the stock. The adjustment follows what has been described as a record quarter for the company, with revenue reaching $14.84 billion and growing 32.23% year-over-year. The stock has demonstrated remarkable strength, delivering a 142.3% return over the past year and approaching its 52-week high of $299. According to InvestingPro analysis, Carvana currently trades at Fair Value levels, supported by a perfect Piotroski Score of 9, indicating excellent financial health.
The analysts noted that the current investor sentiment is caught between bullish and bearish perspectives, but there could be factors not fully accounted for by the market. They posed questions regarding the potential for Carvana’s total addressable market (TAM), specifically questioning if it’s limited to the 40 million used cars market, suggesting that there might be room for growth that could lead to their $500 bull case scenario. InvestingPro data reveals that 7 analysts have recently revised their earnings upwards, with analyst targets ranging from $108 to $340.
Carvana, known for its e-commerce platform for buying and selling used cars, has recently experienced significant share price movements. The company’s performance, particularly in the last quarter, has been a key factor in the analysts’ decision to revise their price target upwards.
The updated price target of $290 indicates Morgan Stanley’s confidence in Carvana’s growth trajectory and market position. It also reflects a broader optimism about the company’s ability to expand its reach within the used car market.
Investors and market watchers will be looking closely at Carvana’s strategies and market performance to see if the company can realize the potential that Morgan Stanley analysts have identified. With the stock price already nearing the new target, all eyes will be on Carvana’s next moves in the competitive used car industry.
In other recent news, Carvana has reported strong first-quarter financial results, exceeding expectations in key metrics. RBC Capital Markets raised its price target for Carvana to $340, citing robust retail unit sales and potential for higher future estimates. Similarly, Citi increased its price target to $325, pointing to a significant year-over-year growth in retail unit sales and website traffic. Piper Sandler also raised its price target to $315, highlighting Carvana’s impressive quarterly performance and market momentum. Needham maintained a $340 price target, emphasizing Carvana’s superior business model and market potential. DA Davidson reiterated a Neutral rating with a $260 target, acknowledging Carvana’s impressive performance this earnings season. Analysts from these firms have noted Carvana’s ability to leverage its operations and infrastructure for growth, with some predicting long-term cash flow improvements and market share gains. These developments reflect a positive sentiment among analysts regarding Carvana’s future prospects in the competitive auto retail market.
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