{
  "id": 14676578,
  "title": "BofA upgrades CarMax stock rating to Buy on pricing gains",
  "url": "https://urgent.news/2026/10/15/bofa-upgrades-carmax-stock-rating-to-buy-on-pricing-gains",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-15T10:58:58.000Z",
  "source": {
    "name": "Investing.com",
    "slug": "investing-com",
    "url": "https://www.investing.com/news/analyst-ratings/bofa-upgrades-carmax-stock-rating-to-buy-on-pricing-gains-93CH-4951173"
  },
  "original_language": "en",
  "account": "On Tuesday, BofA Securities upgraded CarMax shares to a \"Buy\" rating from \"Underperform\" and increased its price target to $65 from $50. The used car retailer has a market capitalization of $7.07 billion and trades at a P/E ratio of 24.08. BofA Securities based its new price target on 17 times the firm's fiscal 2028 earnings per share estimate of $3.75, an increase from its previous 15 times multiple. Analysts anticipate CarMax will maintain positive comparable sales due to ongoing improvements in pricing competitiveness and market share gains. The firm attributes these benefits to recent FTC enforcement of price transparency and the company's own initiatives. BofA Securities considers November 3's strategic update a near-term catalyst, expecting CarMax to disclose cost-saving measures at the event. These cost measures could help sustain positive comparable sales as initial pricing gains and FTC tailwinds fade. CarMax reported strong second-quarter fiscal 2027 results, exceeding expectations with $1.16 earnings per share on $7.88 billion revenue. Used retail comparable sales rose 13%, while total sales increased by 19% year-over-year. Despite these positive developments, BofA Securities maintains an \"Underperform\" rating on CarMax stock, citing a valuation of 15 times the estimated fiscal 2028 earnings per share.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}