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By Sam Boughedda
Investing.com -- CarMax Inc (NYSE:KMX) stock is trading higher Monday after Evercore ISI analyst Michael Montani initiated a Positive Tactical Trading Idea on the stock, adding it to the firm's "Tactical Outperform" list.
CarMax shares have gained 1.4%, although they are still down 28.8% in 2022. Montani raised the price target on CarMax to $105 from $85, maintaining an In Line rating.
According to The Fly, in a note to investors, the analyst said that ahead of the company's earnings in late June, he sees sequential improvement across pricing, unit volume, and credit trends.
Montani believes this should mark a turning point for the stock as "the bad news of double-digit spring comp declines is widely understood."
He added that Carvana 's (NYSE:CVNA) updated operating strategy, which confirmed a sequential uptick in unit demand and gross profit per unit trends in the second quarter, is positive for CarMax.