UPDATE: Goldman Sachs Downgrades CarMax to Neutral, Raises PT on Strong Growth Story, Expected Headwinds

In a report published Wednesday, Goldman Sachs analyst Matthew J. Fassler downgraded the rating on

from Buy to Neutral, but raised the price target from $53.00 to $55.00. In the report, Goldman Sachs noted, “Over the past four quarters, KMX has begun to deliver on the promise of improving used vehicle supply, driving accelerating SSS growth, fine-tuning its expense management, and meeting or exceeding earnings expectations, ending a period of sustained underperformance. Since being added to the Buy list on 11/29/2012, KMX is +43% vs. +20% for the S&P 500 and +26% for the S&P Retail Index (RLX). At the same time, data from recent securitizations suggests credit profits are likely to decline in 2014; tougher compares in the core business and credit dynamics are likely to lead to slowing earnings growth. We lower our rating to Neutral.” CarMax closed on Tuesday at $51.79.