Carvana Co. (CVNA) stock surged 5.36% in Wednesday's pre-market trading session, following a bullish report from Morgan Stanley. The investment bank reiterated its overweight rating on the online used car retailer and raised its price target to $290 per share from $280.
Morgan Stanley's optimistic outlook on Carvana comes on the heels of what the bank described as "a record quarter" for the company. The firm also cited a "strong LT guide" (long-term guidance) as a factor contributing to investor confidence. Additionally, the broader market rebound has helped push Carvana's stock price near the $300 mark.
This positive sentiment from a major Wall Street firm appears to be the primary driver behind today's pre-market rally. Investors are likely reacting to the increased price target and the implication that Carvana's business fundamentals are improving. As the used car market continues to evolve, Carvana's online model seems to be gaining traction, potentially positioning the company for further growth in the coming months.
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