UPDATE: Deutsche Bank Raises PT on CarMax Following Strong Quarter Results

In a report published Monday, Deutsche Bank analyst Greg Poole reiterated a Hold rating on CarMax KMX, and raised the price target from $31.50 to $40.00.

In the report, Deutsche Bank noted, “Carmax reported a very strong quarter, posting EPS of $0.64 (vs cons / DBe $0.58 / $0.53). Vast majority of upside ($0.09 vs our est) was driven by volume (same-store retail +17% vs consensus 10%) and strong conversion (45% of YOY gross profit dropped to bottom-line as SG&A per-unit was down 6% YOY). And pricing was strong (gross margin per-unit was flat YOY and CAF interest rates were essentially flat sequentially). Maintain Hold.”

CarMax closed on Friday at $44.59.