BofA raised the firm’s price target on CarMax (KMX) to $31 from $27 and keeps an Underperform rating on the shares after the company reported “soft” fiscal Q3 results and provided a Q4 outlook that plans for the company to accelerate sales trends by increasing marketing spend and leaning into pricing. The firm, while “constructive” on CarMax’s recovery plan and seeming lack of pressure in subprime, sees share loss to Carvana (CVNA) and the ongoing management transition as likely to weigh on sentiment.
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