CarMax (NYSE:KMX) Helped by Increase in Used Car Rates

Goldman Sachs (NYSE:GS) raised their EPS estimates and price target on CarMax (NYSE:KMX), citing an increase in used car rates as the reason.

Goldman increased their full year 2011 EPS estimate on CarMax from $1.66 to $1.68, for full year 2012 from $1.66 to $1.68, and for full year 2013 from $1.95 to $2.00.

Prices for used cars will gradually change Goldman says as "used vehicle prices is a gradual decline from current elevated levels, with limited supply of dealer trade-ins and off-lease vehicles preventing any sharp fall."

CarMax was trading at $34.52, down $0.01, or 0.03 percent as of 12:49 PM EST. Goldman raised their price target on them from $32 to $34, while maintaining their "Neutral" rating on them.