Seaport Global analyst Glenn Chin maintains $CarMax (KMX.US)$ with a buy rating, and maintains the target price at $95.
According to TipRanks data, the analyst has a success rate of 61.2% and a total average return of 8.1% over the past year.
Furthermore, according to the comprehensive report, the opinions of $CarMax (KMX.US)$'s main analysts recently are as follows:
CarMax's fiscal Q2 outcomes presented a hint of stabilizing share and retail profit growth, though risks persist due to increased loan losses and an inconsistent backdrop among low to middle income consumers. A forecast for gradual share stabilization and enhanced underlying profitability is projected, despite expectations of below-trend EPS power extending into calendar 2025.
CarMax's second-quarter performance presented a dichotomy with an earnings shortfall coupled with revenue surpassing expectations. Despite a 4.3% uptick in comparable retail units carrying into the third quarter, there was a 14% year-over-year decline in CarMax Auto Finance income, and indications suggest a potential deterioration in credit metrics. Nevertheless, the anticipation of stabilizing unit trends and the prospect of lower interest rates has led to an adjustment in the forecasted earnings multiple to 21-times, influencing a higher price target.
Note:
TipRanks, an independent third party, provides analysis data from financial analysts and calculates the Average Returns and Success Rates of the analysts' recommendations. The information presented is not an investment recommendation and is intended for informational purposes only.
Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.
TipRanks provides a ranking of each analyst up to 5 stars, which is representative of all recommendations from the analyst. An analyst's past performance is evaluated on a scale of 1 to 5 stars, with more stars indicating better performance. The star level is determined by his/her total success rate and average return.