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UPDATE: Goldman Sachs Upgrades CarMax to Buy on 2013 Outlook

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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

DateFirmActionFromTo
Jul 2015Goldman SachsUpgradesNeutralBuy
Jun 2015SunTrust Robinson HumphreyInitiates Coverage onNeutral
May 2015Sterne AgeeInitiates Coverage onBuy

View More Analyst Ratings for KMX
View the Latest Analyst Ratings

Posted-In: Goldman SachsAnalyst Color Upgrades Intraday Update Analyst Ratings

 

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