Morgan Stanley Maintains Overweight Rating for CarMax: Here's What You Need To Know

Morgan Stanley has decided to maintain its Overweight rating of CarMax KMX and lower its price target from $90.00 to $75.00.

Shares of CarMax are trading up 3.75% over the last 24 hours, at $61.46 per share.

A move to $75.00 would account for a 22.03% increase from the current share price.

About CarMax

CarMax sells, finances, and services used and new cars through a chain of over 230 used retail stores. It was formed in 1993 as a unit of Circuit City and spun off into an independent company in late 2002. Used-vehicle sales typically account for about 83% of revenue and wholesale about 13%, with the remaining portion composed of extended service plans and repair. In fiscal 2022, the company retailed and wholesaled 924,338 and 706,212 used vehicles, respectively. CarMax is the largest used-vehicle retailer in the U.S. but still estimates that it has only about 4% U.S. market share of vehicles 0-10 years old in 2021. It seeks over 5% share by the end of calendar 2025 and revenue between $33 billion to $45 billion by fiscal 2026. CarMax is based in Richmond, Virginia.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.