CarMax Bears The Brunt Of Uncertain Macro, Competition & Uncertainties In Used-Car Markets: Analysts
Portfolio Pulse from Nabaparna Bhattacharya
Analysts from RBC Capital Markets and Needham have lowered their price targets and EPS estimates for CarMax Inc (KMX) due to weaker-than-expected Q2 results, growing affordability issues, and increased competition. KMX's Q2 net revenues were down 13.1% YoY. The decline in Comp Used Vehicle units by 9% was worse than the industry average of 4-5%. KMX's stock is currently trading higher by 2.12%.
September 29, 2023 | 5:13 pm
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CarMax's weaker-than-expected Q2 results, growing affordability issues, and increased competition have led analysts to lower their price targets and EPS estimates. Despite this, KMX's stock is currently trading higher.
The lowered price targets and EPS estimates by analysts indicate a bearish outlook for CarMax. This is due to weaker-than-expected Q2 results, growing affordability issues in the used car market, and increased competition. These factors are likely to negatively impact KMX's stock price in the short term.
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