UPDATE: Morgan Stanley Downgrades CarMax to Equal-Weight, Raises PT Ahead of Multiple Headwinds

In a report published Monday, Morgan Stanley analyst Ravi Shanker downgraded the rating on

from Overweight to Equal-Weight, but raised the price target from $50.00 to $56.00. In the report, Morgan Stanley noted, “We believe a number of fundamental headwinds lie ahead for KMX which keeps us from remaining Overweight but we also see several defensive measures that prevent the stock from being an Underweight.” CarMax closed on Friday at $55.65.