CarMax stock climbs after BofA upgrades to Buy on improving outlook

CarMax (KMX) aims for mid-teens EPS growth through 2030 via its GEAR plan, focusing on inventory management, digital operations, and AI. It is expanding CarMax Auto Finance (CAF) into tier-two lending, targeting 40% of tier-two volume by 2030. The company expects CAF income to decline slightly in 2027 and 2028 before accelerating. CarMax also targets $200M in annualized savings by 2027 and plans $500M annual capital expenditures from 2028.

CARMAX INC (KMX) filed an SEC Form 8-K — Regulation FD Disclosure. CarMax Outlines Strategy to Strengthen Core Operations and Deliver Robust Growth Highlights plan to improve the customer offering and experience, increase value per transaction, and lower costs Targets mid-single-digit used retail unit CAGR and mid-teens adjusted EPS CAGR through

Analysts are discussing five stocks: Netflix (NFLX) with a Buy rating and $85 target, CarMax (KMX) upgraded to Buy with a $65 target, Workday (WDAY) downgraded to Hold, Wave Life Sciences (WVE) initiated with a Buy rating and $8.37 valuation, and FTAI Aviation (FTAI) with a Buy rating and $305 target.

Bank of America upgraded CarMax (KMX) to Buy from Underperform, raising its price target to $65 from $50. The move is based on improved price transparency in the used-car market, benefiting CarMax's business model. The stock rose over 3% in premarket trading. Analysts cited CarMax's 13% increase in comparable used-vehicle sales in Q2, while the broader industry declined 2%.

CarMax (KMX) shares rose 4% after BofA Securities upgraded the stock to Buy and raised its price target to $65, citing improved price competitiveness and upcoming strategy updates. The FTC's price transparency rule and CarMax's pricing efforts contributed to this shift, with analysts expecting sustained benefits. Shares cooled to $51.75, up 3.9% from the previous close.

Bank of America upgraded CarMax (KMX) to 'buy' from 'underperform', raising its price target to $65 from $50. The bank cited CarMax's 13% rise in comparable used-vehicle sales, driven by improved price competitiveness and FTC regulations. CarMax's pricing changes and cost savings are expected to support future growth.