CarMax Reports February Credit Data, Goldman Maintain Neutral

Goldman Sachs has published a research report on CarMax KMX after the company reported its February credit data.

In the report, Goldman Sachs writes "We expect strong F4Q comps though note more subprime customers could match a used car purchase this year with the timing of an actual tax refund from the IRS (typically a Feb/Mar/Apr occurrence), rather than a tax refund anticipation loan (typically made in the Jan/Feb timeframe), as the number of these loans has decreased yoy. Any impact would likely be small (we estimate a couple percentage points to overall comps), as subprime typically accounts for only roughly 10% of KMX comps in F4Q, some tax anticipation loans continue to be made, and most taxpayers do not take advantage of the loans. Furthermore, we see aggregate sales over the January-April period unaffected by this trend."

Goldman Sachs maintains its Neutral rating and $37 price target.

CarMax closed yesterday at $33.06.