In a report released yesterday, Adam Jonas from Morgan Stanley maintained a Hold rating on Carvana Co (CVNA – Research Report), with a price target of $260.00.
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Adam Jonas’s rating is based on Carvana’s mixed performance and outlook. While the company demonstrated strong growth with a 46% increase in revenues and a decrease in SG&A as a percentage of sales, the lack of a specific margin guide for FY25 has created uncertainty. This lack of clarity on future profitability metrics is a key reason for maintaining a Hold rating.
Carvana’s results exceeded expectations in several areas, such as the adjusted EBITDA margin and retail gross profit per unit. However, wholesale performance was weaker, and there are concerns about the company’s ability to sustain growth against challenging comparisons in FY25. The negative stock reaction, with shares down over 10% post-announcement, reflects these uncertainties and the high expectations that were not fully met.
In another report released on February 18, D.A. Davidson also reiterated a Hold rating on the stock with a $220.00 price target.
Based on the recent corporate insider activity of 269 insiders, corporate insider sentiment is neutral on the stock.