CarMax received an investment-rating upgrade Thursday to outperform from sector perform from RBC Capital Markets, a day after the used-vehicles retailer reported fiscal Q1 results above analysts’ expectations. RBC also increased its price target on CarMax’s stock, moving the target to $69 per share from $63. The stock closed Wednesday at $59.74, up 0.8% on the day.
For the quarter ended May 31, the company reported earnings per share of $1.13, up from $0.90 a year earlier and above analysts’ mean estimate of $0.99. Revenue totaled $4.54 billion, up from $4.13 billion a year earlier and surpassing analysts’ mean estimate of $4.46 billion. Comparable-store used unit sales jumped 8.2%, even better than the 6.9% increase analysts had expected on average.