NEW YORK (TheStreet) -- Carmax (KMX) shares are up 2.3% to $51.17 after KeyBanc initiated coverage on the stock with a "buy" rating and $62 price target on Thursday.
Analysts expect the company to outperform the industry based on its access to a growing supply of late-model used vehicles, aggressive location openings and the maturation of recently opened locations.
Must Read: Warren Buffett's 25 Favorite Stocks
Separately, TheStreet Ratings team rates CARMAX INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate CARMAX INC (KMX) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."