- Evercore ISI analyst Michael Montani downgraded CarMax Inc KMX to In-Line from Outperform with a price target of $120, down from $145, implying a 10% upside.
- Montani said CarMax took a profitable share throughout the calendar year 2021. He sees used vehicle pricing remaining "stubbornly high" with a new and used vehicle shortage likely to extend into early 2024, and it appears to be crowding out lower-income used car buyers.
- The analyst's concern is CarMax retail used unit comps are more likely around flat than the 4% he had been anticipating in 2022. He notes elevated costs as CarMax plans to invest in headcount, technology, and advertising this year.
- Price Action: KMX shares are trading lower by 3.42% at $109.45 on the last check Wednesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
|---|
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in
