Carvana (NYSE:CVNA) Stock Upgrade and Market Performance Insights

• Morgan Stanley upgraded Carvana Co. (NYSE:CVNA) to an "Overweight" rating, indicating a strong confidence in the company's market potential.
• Carvana is expected to report a significant improvement in its first-quarter 2025 financial results, with earnings of 75 cents per share and revenues of $4.04 billion.
• The company's full-year 2025 revenue and EPS projections show a substantial growth, with revenues expected to reach $17.2 billion and EPS at $3.67.

Carvana Co. (NYSE:CVNA), often dubbed the "Amazon of Auto Retail," is making waves in the online used car retail market. By offering a seamless online purchasing experience, Carvana stands out against both traditional car dealerships and other online competitors. The company's innovative approach aims to secure a larger slice of the burgeoning e-commerce auto market.

On May 6, 2025, Morgan Stanley expressed its optimism about Carvana's future by upgrading its rating to "Overweight." This upgrade reflects a vote of confidence in Carvana's ongoing success, particularly noting its stock price at $258.81. According to Benzinga, this decision underscores Carvana's consistent ability to surpass earnings expectations over the past four quarters, solidifying its reputation for reliability in the auto retail sector.

Looking ahead, Carvana is poised to announce its first-quarter 2025 financial results. Analysts, according to the Zacks Consensus Estimate, predict earnings of 75 cents per share on revenues of $4.04 billion. This marks a significant turnaround from the previous year's first quarter, where Carvana reported a loss of 41 cents per share. The expected 32% year-over-year revenue growth further cements Carvana's positive momentum in the market.

For the entirety of 2025, projections for Carvana's revenues stand at $17.2 billion, a 25.8% increase from the prior year. The consensus estimate for 2025 earnings per share (EPS) is $3.67, which would represent a 130.8% increase. These figures underscore Carvana's robust financial health and its adeptness at tapping into the increasing demand for online car sales.

As of now, Carvana's stock price is $258.81, experiencing a minor dip of 0.29% or $0.76. The stock's daily trading range has been between $253.49 and $260.97, with a market capitalization hovering around $55.25 billion. Over the past year, Carvana's stock has seen considerable volatility, peaking at $292.84 and bottoming out at $97.55, illustrating the dynamic and fluctuating nature of the market.

• Morgan Stanley upgraded Carvana Co. (NYSE:CVNA) to an "Overweight" rating, indicating a strong confidence in the company's market potential.
• Carvana is expected to report a significant improvement in its first-quarter 2025 financial results, with earnings of 75 cents per share and revenues of $4.04 billion.
• The company's full-year 2025 revenue and EPS projections show a substantial growth, with revenues expected to reach $17.2 billion and EPS at $3.67.

Carvana Co. (NYSE:CVNA), often dubbed the "Amazon of Auto Retail," is making waves in the online used car retail market. By offering a seamless online purchasing experience, Carvana stands out against both traditional car dealerships and other online competitors. The company's innovative approach aims to secure a larger slice of the burgeoning e-commerce auto market.

On May 6, 2025, Morgan Stanley expressed its optimism about Carvana's future by upgrading its rating to "Overweight." This upgrade reflects a vote of confidence in Carvana's ongoing success, particularly noting its stock price at $258.81. According to Benzinga, this decision underscores Carvana's consistent ability to surpass earnings expectations over the past four quarters, solidifying its reputation for reliability in the auto retail sector.

Looking ahead, Carvana is poised to announce its first-quarter 2025 financial results. Analysts, according to the Zacks Consensus Estimate, predict earnings of 75 cents per share on revenues of $4.04 billion. This marks a significant turnaround from the previous year's first quarter, where Carvana reported a loss of 41 cents per share. The expected 32% year-over-year revenue growth further cements Carvana's positive momentum in the market.

For the entirety of 2025, projections for Carvana's revenues stand at $17.2 billion, a 25.8% increase from the prior year. The consensus estimate for 2025 earnings per share (EPS) is $3.67, which would represent a 130.8% increase. These figures underscore Carvana's robust financial health and its adeptness at tapping into the increasing demand for online car sales.

As of now, Carvana's stock price is $258.81, experiencing a minor dip of 0.29% or $0.76. The stock's daily trading range has been between $253.49 and $260.97, with a market capitalization hovering around $55.25 billion. Over the past year, Carvana's stock has seen considerable volatility, peaking at $292.84 and bottoming out at $97.55, illustrating the dynamic and fluctuating nature of the market.

• Piper Sandler upgraded Carvana (NYSE:CVNA) to an "Overweight" rating, indicating a positive outlook on the company's future growth.
• Morgan Stanley increased its price target for Carvana, contributing to the stock's upward trajectory and investor optimism.
• Carvana's current stock price reflects a significant increase, showcasing its volatility and the market's confidence in its innovative approach to the online used-car retail market.

Carvana (NYSE:CVNA) is a prominent player in the online used-car retail market. The company offers a unique car-buying experience by allowing customers to purchase vehicles entirely online. Carvana's innovative approach has set it apart from traditional car dealerships, making it a significant competitor in the automotive retail industry.

On March 31, 2025, Piper Sandler upgraded Carvana's stock to an "Overweight" rating from a previous "Neutral" grade. At that time, the stock price was $208.78. This upgrade reflects growing confidence in Carvana's market position and potential for future growth. As highlighted by Benzinga, the article "A Closer Look at Carvana's Options Market Dynamics" provides further insights into the company's market activities.

Carvana's stock has been on an upward trajectory, supported by a recent upgrade from Morgan Stanley. The investment bank increased its price target for CVNA from $260 to $280, indicating a positive outlook for the company's future performance. This upgrade has contributed to Carvana being one of the market winners as investors anticipate crucial economic data.

Currently, Carvana's stock price is $211.92, marking a 3.67% increase or $7.51 gain. The stock has traded between $193.50 and $213.77 today, showcasing its volatility. Over the past year, CVNA has experienced a high of $292.84 and a low of $67.61, reflecting significant fluctuations in its market value.

Carvana's market capitalization is approximately $45.24 billion, with a trading volume of 3,540,249 shares on the NYSE. This substantial market cap underscores the company's strong presence in the used-car retail sector. As Carvana continues to innovate and expand, its stock performance remains a focal point for investors and analysts alike.

Morgan Stanley upgraded Carvana (NYSE:CVNA) from Equalweight to Overweight, lifting its price target to $280 from $260, citing the stock’s recent decline as a compelling entry point into a leader in online auto retail and fleet logistics.

The analysts highlighted that a sharp pullback in Carvana’s share price now presents an attractive risk-reward profile, with more than 30% upside to the new price target and potential gains of up to 90% in a bullish scenario that sees shares reaching $400.

Morgan Stanley previously upgraded the stock to Equalweight in November, recognizing Carvana’s significant improvement in fundamentals but cautioning about risks tied to growth sustainability, profit margins, and its leveraged balance sheet, particularly amid uncertainty in the U.S. auto credit and asset-backed securities (ABS) market.

Since then, Carvana has made notable progress, delivering profitable growth while actively addressing its debt load. Despite its customer base being more exposed to subprime auto credit than peers, the company continues to show solid operational execution.

Morgan Stanley upgraded Carvana (NYSE:CVNA) from Equalweight to Overweight, lifting its price target to $280 from $260, citing the stock’s recent decline as a compelling entry point into a leader in online auto retail and fleet logistics.

The analysts highlighted that a sharp pullback in Carvana’s share price now presents an attractive risk-reward profile, with more than 30% upside to the new price target and potential gains of up to 90% in a bullish scenario that sees shares reaching $400.

Morgan Stanley previously upgraded the stock to Equalweight in November, recognizing Carvana’s significant improvement in fundamentals but cautioning about risks tied to growth sustainability, profit margins, and its leveraged balance sheet, particularly amid uncertainty in the U.S. auto credit and asset-backed securities (ABS) market.

Since then, Carvana has made notable progress, delivering profitable growth while actively addressing its debt load. Despite its customer base being more exposed to subprime auto credit than peers, the company continues to show solid operational execution.

Carvana (NYSE:CVNA) delivered strong fourth-quarter results, surpassing analyst expectations on earnings, revenue, and key operational metrics. However, shares plunged 15% intra-day today as investors were left wanting more clarity on the company's outlook for 2025.

For Q4, Carvana posted earnings of $0.56 per diluted share, nearly doubling Street’s estimate of $0.31. Revenue climbed to $3.55 billion, beating the expected $3.34 billion. The company’s adjusted EBITDA reached $359 million, exceeding the $328.9 million consensus.

Retail unit sales came in at 114,379, surpassing projections of 108,339, while gross profit per vehicle hit $6,671, slightly ahead of expectations. However, retail gross profit per unit on an unadjusted basis was lower than anticipated, coming in at $3,226, which analysts noted missed expectations and slowed from last quarter’s growth trend.

DA Davidson analysts pointed out that while retail gross profit per unit rose 15% year-over-year, it fell short of the 16% estimate and was a notable deceleration from the 30% increase in the previous quarter.

Despite these concerns, Carvana remains bullish on 2025, stating that it expects significant growth in both retail unit sales and core profitability. The company also guided for sequential increases in these figures in the current quarter, though the lack of specific financial projections for the full year left some investors hesitant.

While Carvana continues to demonstrate operational improvements, the absence of a concrete 2025 roadmap has made Wall Street cautious, dampening enthusiasm for an otherwise solid quarter.