Carvana Co. (NYSE:CVNA) Sees Positive Outlook from Morgan Stanley with "Overweight" Rating

• Morgan Stanley upgraded Carvana Co. (NYSE:CVNA) to an "Overweight" rating, indicating a strong confidence in the company's market potential.
• Carvana is expected to report a significant improvement in its first-quarter 2025 financial results, with earnings of 75 cents per share and revenues of $4.04 billion.
• The company's full-year 2025 revenue and EPS projections show a substantial growth, with revenues expected to reach $17.2 billion and EPS at $3.67.

Carvana Co. (NYSE:CVNA), often dubbed the "Amazon of Auto Retail," is making waves in the online used car retail market. By offering a seamless online purchasing experience, Carvana stands out against both traditional car dealerships and other online competitors. The company's innovative approach aims to secure a larger slice of the burgeoning e-commerce auto market.

On May 6, 2025, Morgan Stanley expressed its optimism about Carvana's future by upgrading its rating to "Overweight." This upgrade reflects a vote of confidence in Carvana's ongoing success, particularly noting its stock price at $258.81. According to Benzinga, this decision underscores Carvana's consistent ability to surpass earnings expectations over the past four quarters, solidifying its reputation for reliability in the auto retail sector.

Looking ahead, Carvana is poised to announce its first-quarter 2025 financial results. Analysts, according to the Zacks Consensus Estimate, predict earnings of 75 cents per share on revenues of $4.04 billion. This marks a significant turnaround from the previous year's first quarter, where Carvana reported a loss of 41 cents per share. The expected 32% year-over-year revenue growth further cements Carvana's positive momentum in the market.

For the entirety of 2025, projections for Carvana's revenues stand at $17.2 billion, a 25.8% increase from the prior year. The consensus estimate for 2025 earnings per share (EPS) is $3.67, which would represent a 130.8% increase. These figures underscore Carvana's robust financial health and its adeptness at tapping into the increasing demand for online car sales.

As of now, Carvana's stock price is $258.81, experiencing a minor dip of 0.29% or $0.76. The stock's daily trading range has been between $253.49 and $260.97, with a market capitalization hovering around $55.25 billion. Over the past year, Carvana's stock has seen considerable volatility, peaking at $292.84 and bottoming out at $97.55, illustrating the dynamic and fluctuating nature of the market.