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Sentiment on Stocktwits inched up in the ‘bullish’ zone on Tuesday.
Shares of Carvana surged 3.8% on Tuesday after Carvana received a ratings upgrade from
Morgan Stanley which termed the recent pullback in its shares as an “unique opportunity,” with retail sentiment staying upbeat.
Morgan Stanley upgraded Carvana to ‘Overweight’ from ‘Equal Weight,’ raising the price target to $280 from $260.
According to the firm, Carvana is a leader in auto retail and fleet fulfillment with a positive risk-reward skew, which along with the recent broader market pullback presents an “opportunistic entry point for a company” it believes to be a generational compounder, citing a 22% revenue CAGR through 2030, and an expected 15% through 2040.
Carvana shares have pulled back more than 25% since its 2025 high of $285, due to the broader market fall and sensitivity around high-growth and consumer-exposed names on tariff and geopolitical fears, the analyst note said.
The firm warned that while Carvana is more exposed to a lower strata of auto credit relative to the rest of the analyst's auto coverage, it has also “demonstrated execution with profitable growth and addressed leverage concerns.”
The firm also praised Carvana's business model, noting its vertically integrated, national
inventory sourcing and “reconditioning.” Along with operating leverage, that positions Carvana for upside optionality, as well as a favorable risk-reward skew.
Sentiment on Stocktwits inched up in the ‘bullish’ zone on Tuesday. Message volume remained in the normal territory on Tuesday.
One watcher on Stocktwits said the company had the potential to break the downtrend.
Earlier this month, BofA lowered the price target on Carvana to $220 from $270 with a ‘Buy’ rating.
The analyst firm had noted the year-over-year unit growth of 50% in Q4 and data pointing to another unit beat in Q1 with the potential to still gain significant share.
Carvana stock is down 9% year-to-date.
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