CarMax (KMX) PT Lowered to $72 at Truist Securities

Truist Securities analyst Scot Ciccarelli lowered the price target on CarMax (NYSE: KMX) to $72.00 (from $75.00) while maintaining a Hold rating.

The analyst commented: 'We believe 4Q’s sales (geo stacks down 20%+ vs. ’19) and QTD negative MSD comps continue to push out cyclical recovery expectations. CarMax has lost share (likely due to less competitive pricing and, potentially, a growing shift in buying behavior) even as the overall used vehicle mkt remains pressured from affordability issues. In 4Q, the company’s vehicle retailing business lost ~$55mm, with CAF generating over 100% of earnings (cons fin businesses typically command HSD/LDD earnings multiples). While we do expect sales/ earnings to improve in CY24, we expect the recovery ramp to flatten/elongate vs. prior expectations. Remain Hold.'

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