UPDATE: Goldman Sachs Upgrades CarMax to Buy on 2013 Outlook
Goldman Sachs raised its rating on CarMax (NYSE: KMX) from Neutral to Buy and raised its price target from $32 to $42.
Goldman Sachs noted, "We view KMX as one of the best ideas in our space for 2013, with idiosyncratic catalysts; we see an inflection point in earnings and financial returns. Drivers include used car supply, tackling key technology challenges (mobile); benefiting from re-accelerated growth; and, capital allocation (first buyback). While the stock has acted well of late (+27% since September 28 vs. S&P -2%), EPS trends and share price performance have underperformed growth peers for the past two years, and we expect the stock to ride accelerating earnings trends and a nominal rerating of its multiple as well."
CarMax closed at $35.88 on Wednesday.
Latest Ratings for KMX
|Nov 2014||Morgan Stanley||Downgrades||Overweight||Equal-weight|
|Sep 2014||Bank of America||Maintains||Buy|
|Jun 2014||KeyBanc||Initiates Coverage on||Buy|
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.