Carvana 'Has A Lot To Prove': Wall Street Analyst Is Bearish Amid Used Car Price Challenges
Portfolio Pulse from Piero Cingari
Morgan Stanley analyst Adam Jonas has expressed concerns about the sustainability of Carvana Co.'s (NYSE:CVNA) strategy amid challenges in the used car sector. Despite acknowledging Carvana's strides in retail and wholesale Gross Profit per Unit (GPU), Jonas emphasized that the company still has a lot to prove. Morgan Stanley has adjusted its third-quarter total GPU projection for Carvana to $5,266, up from $4,731, and its estimate for the company's third-quarter adjusted EBITDA has jumped to $75 million, up from $27 million. However, the firm reiterated an Underweight rating on Carvana and slightly increased its price target from $35 to $37.
August 11, 2023 | 7:35 pm
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Morgan Stanley has expressed concerns about Carvana's strategy and maintained an Underweight rating on the company's stock, despite increasing its Q3 GPU projection and EBITDA estimate. This could potentially impact investor sentiment and the company's stock price.
The news directly pertains to Carvana and its financial performance. The analyst's concerns about the company's strategy and the Underweight rating could negatively impact investor sentiment and lead to a potential decrease in the company's stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100