Goldman Sachs Maintains Neutral, $31 Target on CarMax

Goldman Sachs reiterates its Neutral rating and $31 target price on CarMax

as web analysis points to late-quarter sales pick-up. Goldman says, “The number of unique visitors to the carmax.com website showed sharp improvement in November, rising 17.0% yoy vs. +1.9% in October and -1.3% in September. Our new analysis of the relationship between internet traffic and same-store retail used unit sales finds a tighter relationship for KMX than for other hardlines retailers, as car consumers intensively research these big ticket purchases online. For all of F3Q, traffic averaged +5.3%, vs. -5.7% in F2Q, a sequential tailwind to yoy comps vs. F2Q, when same-store units tracked -2% yoy.” KMX closed at $31.15 per share on Friday.