Carvana price target lowered to $32 from $37 at Morgan Stanley

Morgan Stanley analyst Adam Jonas lowered the firm’s price target on Carvana to $32 from $37 and keeps an Underweight rating on the shares. The company’s Q3 results showed the company delivering on cost-saving initiatives while helping GPUs and adjutsted EBITDA, the analyst tells investors in a research note. The firm adds however that the high and growing levels of leverage and some real-time signs of deteriorating auto credit in the way of rising delinquencies from auto ABS pools keep Morgan Stanley at Underweight.