The new target reflects 50% upside from current levels and adjusts for Carvana’s recent 5-for-1 stock split.
Morgan Stanley maintained its Overweight rating on Carvana (CVNA) and raised its price target to $102, implying roughly 50% upside from Thursday’s close of $67.82. The adjustment accounts for the company’s 5-for-1 stock split on May 7, equating the new target to a pre-split $510.
Carvana’s stock has struggled to regain its 52-week high of $97.38, despite a flurry of target increases following strong first-quarter results. At least seven major firms revised their Carvana targets in late April, with Morgan Stanley highlighting the company’s low capital spending—below 1% of sales—as a key growth driver.
The firm labeled Carvana a “generational compounder,” citing its ability to expand revenue at roughly 40% annually while maintaining unusually low costs. This efficiency stems from its 2021 acquisition of ADESA’s U.S. auction business for $2.2 billion, which provided existing properties instead of requiring new development.