Goldman Sachs Cuts CarMax Price Target to $22 (KMX)

Goldman Sachs cut its price target on CarMax Inc. KMX to $22 from $24 this morning. Goldman, which maintains a Sell rating on CarMax, lowered its target amid concerns "that Street forecasts are not accounting for sufficient EBIT margin compression off peak levels." Noting that "valuation stands out as the biggest source of support for the stock," Goldman Sachs stands below consensus EPS estimates of $1.27, forecasting $1.23. While Goldman Sachs sees little "material upside to our forecast," it notes that "the biggest upside risk to our view and price target relates to investors' willingness to pay up for scarce unit growth and look through growth-related expenses as the firm re-ramps expansion." CarMax, Inc. is a retailer of used cars. Shares closed June 18 at $20.67.