** Carvana's CVNA.N shares up 5.6% premarket at $225.66 after Morgan Stanley upgrades online used-car retailer to 'overweight' from 'equal-weight'

** CVNA shares on course to rise for fifth straight session, if gains hold

** Morgan Stanley raises PT by $20 to $280, implying 31% upside to stock's last close

** Sharp recent pullback in the stock offers a "unique" opportunity to "gain exposure to a leader in auto retail and fleet fulfillment," Morgan Stanley analyst Adam Jonas wrote in note

** While CVNA remains more exposed to lower strata of auto credit relative to rest of its coverage universe, Jonas said, co has "demonstrated execution with profitable growth and addressed leverage concerns"

** Jonas said recent tour of co's Inspection and Reconditioning Center (IRC) in Florida reinforced CVNA's competitive advantages with vertical integration and scale

** Now, of 24 analysts covering CVNA, recommendation breakdown is 13 "strong buy" or "buy", 10 "hold" and 1 "sell"; median PT is $260, per LSEG data

** Through Mon close, stock down 27% from 2025 intraday peak of $292.84 hit on Feb 19. Shares closed at $88.41 a year ago

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))