Carvana upgraded to Overweight at Morgan Stanley following pullback

Morgan Stanley upgraded Carvana (CVNA) to Overweight from Equal Weight with a price target of $280, up from $260. A sharp pullback in the share price presents “a unique opportunity for investors to gain exposure to a leader in auto retail and fleet fulfillment,” says the analyst, whose recent site visit reinforced the company’s competitive advantages. While Carvana remains more exposed to a lower strata of auto credit relative to the rest of the analyst’s auto coverage, the company has demonstrated execution with profitable growth and addressed leverage concerns, the firm added.