Sam Boughedda

Investing.com — CarMax Inc (NYSE:) 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 are up 1.4%, though they will still be down 28.8% by 2022. Montani increased the CarMax price target to $105, from $85, while maintaining an In Line rating. 

The Fly reported that the analyst stated in a note to investors that he expects the company to report on its earnings in June. He also said that he saw sequential improvements in pricing, unit volumes, and credit trends. 

Montani thinks this will be a pivotal moment for the stock, as it is “the bad news about double-digit spring comp drops is widely understood.”

He said, “He added…” Carvana CarMax’s revised operating strategy (NYSE:), which confirmed an uptick of unit demand and trends in gross profit per units in the second half, was positive.