CarMax (KMX) PT Lowered to $47 at Truist Securities
Truist Securities analyst Scot Ciccarelli lowered the price target on CarMax (NYSE: KMX) to $47.00 (from $74.00) while maintaining a Hold rating.
The analyst comments "2Q missed across the board, including used unit comps of (6.3%) vs our +3.0%E. While there were some headwinds related to pull forward demand in 1Q, we believe KMX continues to face share challenges and the path forward looks highly uncertain (“core run-rate” - 2 yr stack as a proxy, slowed to (2%) from +4%). Further, CAF income came in well below our ests. (and is now expected to be flat/slightly down for the yr) due to a higher loss provision as perf among the ‘22/’23 vintages continues to worsen. Overall, while the co is now trading at a ~45% discount to the mkt on FTM EPS, we believe the risk/reward looks balanced here and remain Hold rated. PT to $47 from $74."