KeyBanc Initiates Coverage On CarMax, Surpass its Sector

In a report released Thursday, KeyBanc analyst Brett D. Hoselton initiated coverage on CarMax, Inc.

giving the company a Buy rating with a price target of $62.00 a share. Analysts at KeyBanc feel there is much cyclical growth potential with a rebound in US vehicle sales. KeyBanc views CarMax as a top player in its industry and projects the company will outperform its industry growth based on high off-lease used vehicle sales, maturation of recent store opens, and fifteen new store openings announced in 2015, making a large expansion. Hoselton projects CarMax to conduct share repurchases, leading to more upward revision to come.