Baird Maintains Outperform Rating for CarMax: Here's What You Need To Know

Baird has decided to maintain its Outperform rating of CarMax KMX and lower its price target from $96.00 to $88.00.

Shares of CarMax are trading up 1.68% over the last 24 hours, at $70.17 per share.

A move to $88.00 would account for a 25.41% increase from the current share price.

About CarMax

CarMax sells, finances, and services used and new cars through a chain of about 240 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 (78% in fiscal 2023 due to the chip shortage) and wholesale about 13% (20% in fiscal 2023), with the remaining portion composed of extended service plans and repair. In fiscal 2023, the company retailed and wholesaled 807,823, and 585,071 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 2022. It seeks over 5% share by the end of calendar 2025. 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.