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

Truist raised the firm’s price target on CarMax (KMX) to $88 from $72 and keeps a Hold rating on the shares. The company’s Q3 results marked a “solid” quarter with modest sales upside, “strong” earnings flow-through, and higher CarMax Auto Finance income due to lower losses, the analyst tells investors in a research note. Industry trends have improved significantly over the last few months, based on Manheim estimates and third-party scraping data, and this uplift, coupled with CarMax’s operational improvements, should enable solid sales growth for the next several quarters, Truist adds.