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Morgan Stanley (MS) upgraded Carvana (CVNA) to Overweight from Equal Weight, citing the stock's recent pullback as an attractive opportunity for investors.
Market Domination anchors Josh Lipton and Julie Hyman highlight that Carvana's improved position has helped the company address previous debt concerns and demonstrate profitable growth.
To watch more expert insights and analysis on the latest market action, check out more Market Domination here.
Morgan Stanley upgrading Carvana from equal weight to overweight. The note there from Adam Jonas saying the stock's recent pullback is creating an attractive opportunity for investors. Indeed, the title of it, Phoenix takes flight, very poetic, rising from the ashes analogy here to describe Carvana. Um and basically, they say that Carvana is in a good position now because of this sort of rationalizing it's done of its balance sheet, improving its free cash flow, um so that it doesn't fall into the kind of debt and leverage issues that it had in the past.
Yeah, they say, listen, it's it is more exposed. They say to lower strata of auto credit relative to the rest of our coverage universe, auto coverage, but the company has demonstrated, they say, execution, profitable growth, address leverage concerns. They said those Q4 results showed four consecutive quarters of double-digit retail unit growth, two times industry average even on margins.
And they call it the potential Amazon of auto retail.
There you go. There you go.
