CarMax (KMX) PT Lowered to $80 at RBC Capital; 'Sell-Off Feels Overdone'

RBC Capital analyst Steven Shemesh lowered the price target on CarMax (NYSE: KMX) to $80.00 (from $103.00) while maintaining a Outperform rating.

The analyst commented: "F4Q’25 Review - Sell-Off Feels Overdone; KMX posted strong F4Q results and indicated that momentum has carried forward into 1Q with F1Q to date comps running +HSD. We believe share weakness on the print (likely related to mgmt's expectation for higher loan loss provisions in 1Q as well as broader macro dynamics) is likely overdone. Our forward sales outlook is largely unchanged, though we're revising our EPS estimates lower to better align with mgmt's newly introduced EPS algorithm. For 2025/2026, we now model adj. EPS $3.65/ $4.31 ($4.41/$5.17 prior). Our PT comes down to $80 ($103 prior) based on ~18.5x (~20x prior) our revised 2026 EPS estimate of $4.31. The lower multiple reflects a lower market multiple."

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