Evercore upgrades CarMax to Outperform on favorable industry backdrop

Evercore ISI upgraded CarMax (KMX) to Outperform from In Line with a price target of $110, up from $90. The firm sees the company’s improving comp and share trends persisting amid a favorable industry backdrop. Improvements in Evercore’s used car dealer survey, and a widening used versus new car transaction price gap, are favorable for stronger comps at CarMax, the analyst tells investors in a research note. Evercore’s base case applies a market multiple for the shares on recovering 2026 earnings. The Street’s earnings estimates do not reflect CarMax’s sustained mid-single digit retail used unit comp trends, improving market share, and cost leverage, the firm contends.