RBC Capital on CarMax (KMX): 'A Lot of Questions Should Be Answered Following Guide Down'

RBC Capital analyst Steven Shemesh reiterated a Sector Perform rating and $34.00 price target on CarMax (NYSE: KMX).

The analyst commented: "A Lot of Questions Should Be Answered Following Guide Down/Leadership Transition; Following the 11/6 press release, guiding down F3Q and announcing that CEO Bill Nash would be stepping down, we'd argue that F3Q results are less important than the Board's perspective on: 1) what could have been done differently over the past few years to yield better results?; and 2) what might need to change from a strategy perspective? For F3Q, we model comp used unit sales -10% (cons. -8% / guidance -8-12%), net sales -9.5% y/y (cons. -8.6%) and adj. EPS -62% y/y to $0.30 (cons. $0.37 / guidance $0.18-0.36). We rate shares Sector Perform and have a $34 PT based on ~15x our FY'27 adj. EPS estimate of $2.26 (cons. $2.89)."

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 $41.01 yesterday.

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