Bank of America upgrades CarMax to Buy, lifts price target to $65
Bank of America Securities raised its rating on CarMax from Underperform to Buy and increased its price target to $65, up from $50. The upgrade cites the FTC’s price‑transparency rule and CarMax’s own pricing work, which drove a 13% rise in comparable used‑vehicle sales in the fiscal second quarter while the industry fell 2%. The analyst also highlighted the upcoming November 3 strategic update as a near‑term catalyst, and the stock jumped about 4% in trading.
Why it matters
The higher target suggests upside potential for shareholders, and the upgrade may attract new buying interest. The firm’s pricing advantage could sustain comparable‑sales growth, supporting future earnings expectations (BofA’s note).
Key facts
- 1BofA upgraded CarMax to Buy from Underperform and raised the price target to $65, up from $50. investing.com
- 2CarMax’s comparable used‑vehicle sales rose 13% in the fiscal second quarter, versus a 2% decline for the industry. investing.com
- 3Shares rose roughly 4% after the upgrade, trading at $51.75, up 3.9% from the prior close. finance.yahoo.com
- 4The FTC price‑transparency rule, in effect since May, is credited with improving CarMax’s price competitiveness. finance.yahoo.com
- 5BofA expects the November 3 strategic update to outline cost‑cutting measures that could support the sales momentum. investing.com
Summary written by AlphAI AI Desk from 7 of 7 sources. Not investment advice. Figures are as stated by the linked sources.