Morgan Stanley boosts Carvana’s bull case on expanding TAM

Morgan Stanley analyst Andrew Percoco maintained an Overweight rating and $450 price target on Carvana (CVNA), but boosted its bull case on the stock to $750, noting that the company’s acquisition of four new car dealerships in December signal to the firm that Carvana is “readily expanding” its total addressable market, or TAM, beyond used cars. Morgan Stanley added that Carvana’s proprietary software and physical infrastructure can enable advancements in both autonomous vehicles and electric vehicles.