CarMax price target raised to $88 from $72 at Truist

Truist analyst Scot Ciccarelli raised the firm’s price target on CarMax (KMX) to $88 from $72 and keeps a Hold rating on the shares. Q3 was “a solid quarter,” with “modest” sales upside and “strong” earnings flow through, says the analyst, who thinks some of this performance was anticipated given the stock’s appreciation over the last month compared to its moderate, roughly 4% move today. Based on Manheim estimates and third-party scraping data, the firm’s sense is that industry trends have improved significantly over the last few months and this uplift, coupled with CarMax’s operational improvements, should enable “solid sales growth for the next several quarters,” despite competitive and price perception challenges, the analyst added.