Morgan Stanley Cuts Carvana (CVNA) Price Target to $88
Morgan Stanley keeps its Overweight rating on Carvana, setting a target price of $88, a 49.58% upside from the current price.
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Morgan Stanley cut its price target on Carvana Co. ($CVNA) to $88 from $90 on October 15, 2026, and rates the stock "Overweight".
Since the rating, $CVNA is down 3.0% to date (from the $60.62 close on Oct 15, 2026).
CVNA
Carvana Co.
Key Points
- Morgan Stanley reiterated its Overweight rating on Carvana Co. with a price target of $88 on October 15, 2026.
- As of October 16, 2026, Carvana shares traded recently around $58.97, which is below both the target price and its 50-day moving average.
- The average price target from analysts for Carvana stands at about $82.19, indicating a potential upside from current levels.
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Morgan Stanley reiterated its Overweight rating on Carvana Co. (NYSE: CVNA) on October 15, 2026, setting a price target of $88. This target is below the firm’s prior target of $90. The current market price for Carvana shares was $58.97 as of October 16, 2026.
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Other Institutional Activity in Carvana
Several other institutional investors have made adjustments to their positions in Carvana. Price (T. Rowe) Associates Inc. reduced its stake by 4.7%, ending with about 84.7 million shares valued at roughly $4.98 billion. In contrast, Capital Research Global Investors increased its holdings by 16.9%, bringing its total to approximately 63.4 million shares worth about $3.73 billion. Blackrock Inc. trimmed its position by 15.9%, leaving it with about 48.5 million shares valued at around $2.85 billion. Vanguard Capital Management LLC grew its stake slightly by 1.4%, totaling around 45.6 million shares worth about $2.68 billion, while FMR, LLC decreased its holdings by 9.8%, now holding about 33.6 million shares valued at around $1.98 billion.
Carvana Co. Stock Up 1.5%
Carvana shares are currently trading below their 50-day moving average of $68.35 and their 200-day average of $70.86. They are also significantly below the 52-week high of $97.38, down about 39.4%. However, they are above the 52-week low of $54.46, trading about 8.3% higher than that level. The stock is also trading below the average analyst price target of $82.19, suggesting a potential upside.
$CVNA price target
Carvana Co. daily closes and this analyst's $88 target. Not advice.
Recent Earnings
For the trailing twelve months, Carvana reported revenue of approximately $25.06 billion, showing a year-over-year growth of 52.4%. The company achieved an EPS of $1.90 and maintained a net margin of 6.3%. Its next earnings report is scheduled for October 28, 2026.
Earnings drift grade
Outlook vs expectations on the last report — not price action.
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Forward outlook
7 target raises vs 3 cuts.
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EPS & revenue
EPS beat estimates by 12.0%. Revenue beat estimates by 3.8%.
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Profit surprise
EBITDA met by 2 percent. Operating income beat by 2 percent.
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Pre-earnings setup
Bar was high, analysts already very bullish.
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Analyst signal
7 target raises, 3 target cuts.
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Earnings quality
Gross margin down 1.2 points. Negative free cash flow.
Earnings Call Summary
Carvana sold a record 187,000 cars in the quarter, up 40 percent year over year, and generated $6.43 billion in revenue, up 52 percent. The recon team fixed labor efficiency issues by building new tools and centralizing planning. The company sees the wholesale-to-retail price spread as temporary and expects it to normalize over the next few months.
Guidance Management expects all-time record retail units sold and adjusted EBITDA in the second quarter. The company still targets 13.5 percent adjusted EBITDA margin by 2030 to 2035 while selling 3 million cars per year. Full year 2026 growth expected to be significant on both metrics.
Slightly positive report. The quarter was acceptable, but the forward setup is not strong.
Insider Buying and Selling at Carvana Co.
Recent insider transactions at Carvana include several sales by key executives. On October 1, 2026, Chief Financial Officer Mark W. Jenkins sold 63,750 shares, valued at about $3.93 million. Officer Thomas Taira sold 5,597 shares on October 12, 2026, for approximately $363,805. Earlier, on September 14, 2026, Taira sold another 16,789 shares valued at about $1.18 million. These transactions were not part of a planned selling strategy.
Analysts Set New Price Targets
On October 15, 2026, Morgan Stanley maintained its Overweight rating on Carvana with a target price of $88. Other recent ratings include Oppenheimer, which maintained an Outperform rating with a target of $90, and Stephens & Co., which also maintained an Overweight rating with a target of $83. The consensus among analysts puts the average target price at $82.19, based on 21 opinions, with a general recommendation to buy.
About Carvana
Carvana Co. operates an e-commerce platform for buying and selling used cars, providing services like vehicle acquisition, inspection, online shopping, and financing. Founded in 2012 and based in Tempe, Arizona, the company aims to simplify the car buying process through its innovative platform.
Bottom Line
Investors should keep an eye on Carvana's upcoming earnings report on October 28, 2026, and watch for any further updates from analysts. Morgan Stanley's reiteration of its rating indicates confidence in the company's future performance despite the current trading levels.
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Source: Morgan Stanley's rating change on $CVNA (Oct 15, 2026). Written by software, not financial advice. How we make alerts