CarMax (KMX) is expected to report "flat" Q1 comparable used-vehicle sales, up from prior forecast for a 3% decline, Truist Securities said in a Tuesday note.

The brokerage said flat comps would imply an acceleration on a two-year basis to 8% from about 3%, though that remains "far shy" of the roughly 30% growth rate being posted by Carvana (CVNA).

Truist raised its Q1 earnings estimate to $1.06 per share from $1.03 but said investors are still trying to assess "how much [gross profit per unit] they had to give up" to generate the improved sales trend.

CarMax is scheduled to report results before the market opens Wednesday.

Truist raised its price target to $47 from $37 and maintained a hold rating.

Price: 52.63, Change: +0.41, Percent Change: +0.79