Evercore ISI Maintains Buy Rating for CarMax with $85 Target Price

Evercore ISI analyst Michael Montani reiterated a Buy rating for CarMax with a price target of $85.00, citing the company's recent earnings release and strong revenue growth. Montani is a 4-star analyst with an average return of 6.7% and a 60.87% success rate. Other analysts have also provided mixed views on CarMax, with Benchmark Co. issuing a Buy rating and Bank of America Securities assigning a Sell rating. Corporate insider sentiment is neutral, with 52 insiders selling shares.

Evercore ISI analyst Michael Montani reiterated a Buy rating for CarMax (KMX) with a price target of $85.00, citing the company's recent earnings release and strong revenue growth [1]. Montani, a 4-star analyst with an average return of 6.7% and a 60.87% success rate, highlighted the company's strategic focus on enhancing its omnichannel capabilities and vehicle reconditioning processes [1].

Benchmark Co. also issued a Buy rating for CarMax, while Bank of America Securities assigned a Sell rating [2]. Corporate insider sentiment remains neutral, with 52 insiders selling shares [2].

Based on the one-year price targets offered by 13 analysts, the average target price for CarMax Inc (KMX) is $82.47, with a high estimate of $122.13 and a low estimate of $52.00 [1]. The average target implies an upside of 32.19% from the current price of $62.39. More detailed estimate data can be found on the CarMax Inc (KMX) Forecast page.

The consensus recommendation from 19 brokerage firms indicates an "Outperform" status for CarMax Inc (KMX) [1]. GuruFocus estimates the GF Value for CarMax Inc (KMX) in one year to be $77.80, suggesting an upside of 24.7% from the current price of $62.39 [1].

CarMax Inc (KMX) achieved a 42% growth in earnings per share, marking the fourth consecutive quarter of positive retail unit comps and double-digit EPS growth [1]. The company reported total sales of $7.5 billion, a 6% increase from the previous year, driven by higher volume despite lower prices [1].

However, CarMax Auto Finance's sales penetration decreased by 150 basis points year-over-year, primarily due to an influx of self-funded higher credit purchasers [1]. The average retail selling price decreased by approximately $400 per unit year-over-year, reflecting pricing pressures [1]. Wholesale gross profit per unit, while historically strong, was slightly down from the previous year [1]. The loan loss provision increased to $102 million, influenced by higher sales and lower credit quality, as well as uncertain economic outlooks [1].

Analysts have mixed views on CarMax's stock, with some highlighting the company's strong strategic initiatives and others expressing caution due to financial and competitive concerns. Investors should carefully consider these factors when making investment decisions.

References:
[1] https://www.gurufocus.com/news/2983693/carmax-kmx-rated-buy-by-benchmark-with-75-target-kmx-stock-news
[2] https://www.tipranks.com/stocks/kmx/forecast