Sam Boughedda

Investing.com — Online used car seller shares Carvana The shares of Co (NYSE: ) have risen by more than 1% since then Morgan Stanley (NYSE:) Issued a statement reiterating the stock’s orverweight rating, and setting a $430 price target for it

Carvana shares suffered significant losses from their intraday highs at $376.83 down to $130 in August.

Morgan Stanley Analyst Adam Jonas, however, stated Carvana was “one the most discussed stocks recently” after speaking to a variety of clients.

Jonas said that “many conversations are about the’sharpening a pencil’ type, as some see an entrance point here after missing 2020 and 2021 rallies or never having owned the stock.”

The conversation also highlighted serious concerns over rising inventory and slowing sales. He said that the share price today offers a compelling risk-reward ratio and reiterated his OW rating.

According to the analyst, Carvana stock at $140 is a more risky option than the $40 price of two years ago. This is because Carvana has solidified its competitive edge and remains the “apex predator” in the auto retail industry.