CarMax Upgraded To Neutral From Sell

CarMax, Inc. KMX has been upgraded to Neutral from Sell as profitability appears to be more sustainable, even as used car prices fade, Goldman Sachs reports. Goldman is raising earnings estimates for 2010 to $1.49 (from $1.48), 2011 to $1.51 (from $1.46) and for 2012 to $1.72 (from $1.60). Price target is also being raised to $24 from $21, and is given a Neutral rating over a Buy due to the company's elevated margins that might constrain earnings growth, according to Goldman. CarMax, Inc. closed Friday at $22.39.