Carvana Stock Keeps Running After 3 Monster Years — Now, An Analyst Flags 67% Bull Case Upside

Carvana’s dealership acquisitions and technology development have expanded the company’s total addressable market, which could support further gains, according to Morgan Stanley.

• Carvana stock is up 5% so far this year, after more than doubling in 2025.
• Morgan Stanley analysts reiterated their ‘Buy’ rating on CVNA and forecast a bull case where the stock could climb to $750.
• However, the consensus estimate puts the 12-month stock growth at a mere 1%.

Carvana Co.’s incredible run continues into the new year, with its recent growth initiatives prompting analysts to raise their bull case for the stock.

The online used-car dealer’s shares are up about 5% so far this year after doubling in 2025, a surge that placed CVNA among the year’s top gainers and earned it a spot in the S&P 500 index.

Morgan Stanley’s CVNA Bull Case

In a recent investor update, Morgan Stanley reiterated its ‘Buy’ rating and $450 price target for Carvana stock, but boosted its bull case to $750 – a nearly 70% upside from the present levels.

Morgan Stanley analysts said the company’s acquisition of new-car dealerships last year decisively expands its total addressable market beyond used vehicles, while its proprietary software and physical infrastructure provide room for growth in autonomous and electric vehicles.

Carvana’s Growth Levers

Carvana, which competes with CarMax, is an early pioneer of online auto sales and has enjoyed substantial growth over the past year as U.S. tariffs prompted consumers to turn to auto deals and used cars. The company’s quarterly revenue growth has climbed over the past two years. 

Last year, it acquired four dealerships, marking a significant push into new-car sales and physical retail locations.

The stock also emerged as a favorite among retail investors, with CVNA’s watcher count on Stocktwits climbing 14% – one of the fastest growth rates among large-cap companies. Retail sentiment has climbed steadily over the past month and was ‘bullish’ in the last reading. 

Analysts Broadly See Limited Stock Upside

Despite the incredible stock gains, several brokerages see future potential upside. Currently, 18 of the 25 analysts rate it ‘Buy’ or higher, six rate it ‘Hold,’ and one rates it ‘Sell,’ according to Koyfin. However, the average price target of $446.73 is only about $4 higher than the stock’s last close. Notably, short interest in the stock has climbed to 10% this month, the highest in about a year.

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