CarMax On The Fast Track, Analyst Upgrades Stock Citing Recovery Signs
Portfolio Pulse from Shivani Kumaresan
Needham analyst Chris Pierce upgraded CarMax Inc (NYSE:KMX) from Hold to Buy with a price target of $99, citing signs of recovery, easy comps into tax refund season, and benefits from prior omni-channel investments. The analyst highlights the potential for a multi-year recovery driven by interest rate relief and rising used vehicle supply. Despite higher advertising and technology expenses, the upgrade reflects confidence in CarMax's growth trajectory.

March 20, 2024 | 5:42 pm
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CarMax Inc upgraded by Needham analyst from Hold to Buy with a price target of $99, indicating confidence in the company's recovery and growth potential.
The upgrade by Needham analyst Chris Pierce is based on early positive data, easy comps into the tax refund season, and the leveraging of prior omni-channel investments. The analyst's confidence in a multi-year recovery, driven by interest rate relief and rising used vehicle supply, suggests a positive outlook for CarMax's stock in the short term. The mention of CarMax absorbing higher costs while still being positioned for growth adds to the positive sentiment.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100