CarMax (KMX) delivered "solid" Q4 results, with improvements that were driven by consumers adjusting to higher prices and "modestly" better affordability, Truist analysts said in a Thursday note.

Referring to tariffs, Truist analysts said they expect levies to "be a mixed bag" for the company as higher new auto prices could boost used car sales initially, but a subsequent rise in used prices could propel potential buyers to "fall out of the pool" and concentrate on repairing their current vehicle.

Truist highlighted the fact that CarMax maintained its long-term goals -- including selling over 2 million total units and $33 billion in annual revenue -- but removed the previous timeframes it had for those objectives amid the macro uncertainty.

Truist reiterated a hold rating and $88 price target.

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