U.S. markets closed
  • S&P Futures

    4,284.75
    -1.75 (-0.04%)
     
  • Dow Futures

    33,977.00
    -4.00 (-0.01%)
     
  • Nasdaq Futures

    13,517.50
    -5.75 (-0.04%)
     
  • Russell 2000 Futures

    1,998.60
    -3.10 (-0.15%)
     
  • Crude Oil

    90.28
    -0.22 (-0.24%)
     
  • Gold

    1,769.90
    -1.30 (-0.07%)
     
  • Silver

    19.33
    -0.13 (-0.69%)
     
  • EUR/USD

    1.0086
    -0.0006 (-0.06%)
     
  • 10-Yr Bond

    2.8800
    -0.0130 (-0.45%)
     
  • Vix

    19.56
    -0.34 (-1.71%)
     
  • GBP/USD

    1.1921
    -0.0012 (-0.10%)
     
  • USD/JPY

    136.1800
    +0.3180 (+0.23%)
     
  • BTC-USD

    22,775.71
    -686.18 (-2.92%)
     
  • CMC Crypto 200

    541.58
    -16.15 (-2.90%)
     
  • FTSE 100

    7,541.85
    +26.10 (+0.35%)
     
  • Nikkei 225

    28,967.94
    +25.80 (+0.09%)
     

Analysts Hailed CarMax's Q1 Performance While Highlighting Concerns

  • Oops!
    Something went wrong.
    Please try again later.
·1 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Analysts lauded CarMax Inc's (NYSE: KMXQ1 beat while also pointing out the macro concerns.

  • RBC Capital analyst Steven Shemesh maintained CarMax with an Outperform and raised the price target from $104 to $108 in a note titled, "F1Q'23 Follow-Up – Navigating Volatility Well."

  • KMX's results were broadly in line with expectations, Shemesh noted.

  • He expected the inflationary pressures and the eventual replenishment of new car inventory to weigh on the used vehicle market.

  • He believes KMX's recent investments behind digital capabilities position it well to continue gaining share.

  • Chris Pierce from Needham reiterated a Hold rating on CarMax post KMX's fiscal 1Q results in a note titled "Possible Switch To Premium From Unleaded, Reiterate Neutral."

  • He was impressed with the execution and a notable potential positive philosophical shift in KMX's critical KPI that could have staying power even as the used vehicle end market shows sustained weakness.

  • Pierce's Neutral rating is predicated on end-market weakness, and lower SG&A leverage as KMX continued its pivot to omnichannel. Still, KMX delivered higher gross profits vs. his expectations, mitigating some of his concerns on SG&A leverage.

  • Also, CAF income provided an offset to some of the marketplace weaknesses.

  • Price Action: KMX shares traded higher by 0.26% at $98.62 on the last check Monday.

  • Photo via Wikimedia Commons

Latest Ratings for KMX

Date

Firm

Action

From

To

Feb 2022

Evercore ISI Group

Downgrades

Outperform

In-Line

Jan 2022

Seaport Global

Upgrades

Neutral

Buy

Dec 2021

RBC Capital

Maintains

Outperform

View More Analyst Ratings for KMX

View the Latest Analyst Ratings

See more from Benzinga

Don't miss real-time alerts on your stocks - join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.