In a report released today, Daniela Haigian from Morgan Stanley reiterated a Buy rating on Carvana Co, with a price target of $450.00.
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Daniela Haigian’s rating is based on a combination of factors that highlight Carvana Co’s strong market position and potential for growth. The company’s competitive advantage is reinforced by its improved balance sheet and vertically integrated financing platform, which enhances its ability to monetize loan sales even in volatile environments. This stability is further supported by significant loan purchase agreements, providing a buffer against potential market fluctuations.
Despite recent market pullbacks, Haigian believes these are overreactions to short-term positioning rather than reflections of Carvana’s long-term prospects. The company’s projected growth in retail unit sales aligns with expectations, and the risk-reward profile is favorable, with potential upside significantly outweighing downside risks. Haigian sees Carvana as a generational compounder, suggesting that any near-term price declines could be strategic opportunities for investors to increase their positions.
In another report released today, RBC Capital also maintained a Buy rating on the stock with a $460.00 price target.
Based on the recent corporate insider activity of 363 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CVNA in relation to earlier this year.