UPDATE: Deutsche Bank Reiterates Hold Rating, Raises PT on CarMax

In a report published Friday, Deutsche Bank reiterated its Hold rating on CarMax (NYSE: KMX), and raised its price target from $26.00 to $29.00.Deutsche Bank noted, “Strong unit sales growth / SG&A leverage leads to outperformance. Carmax reported F3Q12 EPS of $0.41 vs. DBe / Cons of $0.37 / $0.39. Volume growth improved significantly from recent quarters in both retail (+12% same-store growth) and wholesale (+10% vs -2% in last two qtrs), enabling SG&A leverage (SG&A per-unit declined by 1.8% YOY, compared to a rise of ~2% in the last two qtrs). These two factors more than accounted for the positive variance vs. our est. CAF Income underperformed somewhat (about 1 cent), as higher loan loss provisioning and lower interest margin more than offset a higher-than-expected receivables base. We maintain Hold on valuation.”CarMax closed on Thursday at $37.97.