UPDATE: BGB Securities Raises PT to $40 on CarMax
BGB Securities increases its price target to $40 on Buy-rated CarMax (NYSE: KMX) as it is optimistic on the company's long-term outlook.
BGB Securities says, "KMX reported 4Q12 results on Thursday, April 5, 2012. EPS for the quarter was $0.41, beating our estimate by a penny. Comp store used units rose 4% YoY in 4Q12, a good result considering continuing weak economic conditions. Also of note in the quarter was the strong performance of CarMax Auto Finance (CAF), which saw income rise 22% to $66.1 million. Importantly, management believes that KMX grew its market share modestly in FY12 in its core market of one to six-year-old vehicles; we believe that market share gains are evidence that consumers continue to respond well to KMX's unique customer offering."
KMX closed at $32.78 a share yesterday.
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