CarMax +4.5% as RBC upgrades, seeing positive momentum

|About: CarMax Group (KMX)|By:, SA News Editor

CarMax (KMX +4.5%) is off to a strong start after RBC upgrades shares to Outperform from Sector Perform with a $69 price target, raised from $63, citing positive momentum despite declining used car values.

RBC notes that KMX's comps have continued to outpace expectations because of falling used vehicle values - making "used" more attractive vs. "new" - and significant improvements in search engine optimization, trends the firm believe should continue.

The firm also says recent data has helped ease prior concerns regarding unit margins and CAF loss rates.

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