CarMax (KMX) PT Lowered to $92 at Needham

Needham analyst Chris Pierce lowered the price target on CarMax (NYSE: KMX) to $92.00 (from $101.00) while maintaining a Buy rating.

The analyst comments "We reiterate our Buy rating but lower our price target to $92 following Q4 results and company commentary. We continue to see KMX as a beneficiary of an improving used vehicle unit backdrop and finally poised to lever omni-channel investments, but investor enthusiasm is likely to remain muted given the comp miss even with used vehicles providing a potentially safer hiding place vs retail peers. Macro uncertainty is re-entering the picture, with bears highlighting increasing used ASPs (following tariff induced new vehicle ASP increases) and the potential for eventual demand destruction similar to '22, which we view as unlikely given the vastly different backdrops. Our $92 target is 10x our FY27 adj EBITDA, a discount vs projected earnings growth and providing a higher margin of safety vs growthier used vehicle levered peers."

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