CarMax initiated with an Equal Weight at Stephens

Stephens analyst Jeff Lick initiated coverage of CarMax (KMX) with an Equal Weight rating and $86 price target Prior to its last reported quarter, CarMax was in the midst of a meaningful fundamental downdraft, with same store units sold negative nine out of 10 quarters and by an average of (9.2%) per quarter, the analyst noted. While Q2 results “possibly have marked a turning point,” it is still early in the recovery process and the transition from profit decline to profit growth, says the analyst, who adds that the firm is “encouraged by what we see.”