Bank of America upgrades CarMax to Buy, lifts price target to $65
Bank of America raised its rating on CarMax to Buy and increased its price objective to $65, up from $50. The upgrade cites the company's stronger pricing power and a 13% rise in comparable used‑vehicle sales in the fiscal second quarter. The move follows the FTC’s price‑transparency rule, which analysts say has improved CarMax’s market share. CarMax’s shares jumped about 4% after the announcement.
Why it matters
BofA expects the rating lift and higher target to support further share price gains, as the company continues to benefit from pricing advantages and upcoming cost initiatives. The upgrade may also influence other investors who follow BofA’s recommendations.
Key facts
- 1Bank of America upgraded CarMax to a Buy rating and raised its price target to $65, up from $50. investing.com
- 2Comparable used‑vehicle sales increased 13% in the fiscal second quarter. investing.com
- 3CarMax reported earnings of $1.16 per share on revenue of $7.88 billion for fiscal Q2 2027. investing.com
- 4Shares rose roughly 4% in the afternoon session after the upgrade. finance.yahoo.com
- 5The FTC’s price‑transparency enforcement is credited with enhancing CarMax’s price competitiveness. investing.com
Summary written by AlphAI AI Desk from 6 of 6 sources. Not investment advice. Figures are as stated by the linked sources.