Sterne Agee CRT Cuts Price Target on CarMax (KMX) on Recent Weakness

Sterne Agee CRT maintained a Buy rating on CarMax (NYSE: KMX), and cut the price target to $83.00 (from $87.00), on recent weakness in share price. Analyst Ali Faghri sees the weakness as a buying opportunity. KMX is scheduled to release its earnings on September 22nd, before market opens.

Faghri commented, "We view the recent weakness in KMX's share price as an opportunity to build positions in a best-in-class retailer benefitting from a strong used car cycle and offering consistent long-term unit growth from new and maturing stores. KMX shares have underperformed the S&P 500 by almost 5% since reporting 1Q15 earnings in late June and we believe weakness is related to concerns about dealer gross profit trends and a potential slowdown in used vehicle sales. In our view, these concerns are overstated, creating a compelling entry point for shares especially given our expectation for a stronger fiscal 2Q15 after a modest sales miss in 1Q."

For an analyst ratings summary and ratings history on CarMax click here. For more ratings news on CarMax click here.

Shares of CarMax closed at $60.02 yesterday.

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