Stephens raises CarMax price target to $43, citing better-than-expected Q4 sales data ahead of earnings.

Stephens increased CarMax's price target from $39 to $43 while maintaining an Equal Weight rating ahead of the company's Q4 FY2026 earnings report on April 14. The firm believes Wall Street is too pessimistic about same-store unit sales, as high-frequency data suggests stronger sales momentum than expected. CarMax is also executing a strategy to lower used car margins and boost marketing, aiming for $150 million in SG&A savings by fiscal 2027. Despite challenges like a CEO transition and market headwinds, the earnings report will be key to seeing if sales improvements stabilize the stock, which has fallen over 50% in the past year.