Marcin Frąckiewicz

June 12, 2026, 12:57 PM EDT. Carvana (CVNA) closed at $67.82 on June 11, up slightly over the week but well below its 52-week high of $97.38. Morgan Stanley maintained an Overweight rating and set a $102 price target on June 10, reflecting a 50% upside from current levels. This target is split-adjusted; the original pre-split target was $510, aligned with Carvana's May 7 five-for-one stock split. Morgan Stanley describes Carvana as a "generational compounder," highlighting its capital spending below 1% of sales while growing revenue around 40% annually. Key to this efficiency is Carvana's acquisition of ADESA's U.S. auction business in 2021, providing existing sites to convert at $2-3 million each versus $30-35 million for new locations. As of Q1, Carvana operates 18 inspection centers and 16 integrated ADESA sites, with scale-up potential to 3 million vehicles annually. Morgan Stanley projects mature inspection and reconditioning centers (IRCs) can yield $228 million in operating profit each.