Market Overview

Bank of America Maintains CarMax at Buy, Reviews Solid 1Q

Share:
Related KMX
Rod Lache Lays Out The Tactical Reason To Stop Buying CarMax Shares
Benzinga's Top Upgrades, Downgrades For November 17, 2017

In a report published on Friday, Bank of America analyst John Murphy reiterated a Buy rating and a price target of $56 on CarMax (NYSE: KMX) and reviewed 1Q results that were better than forecast.

In the report, Bank of America stated, "CarMax reported 1Q:14 EPS from continuing ops of $0.64, above our estimate of $0.52 and consensus of $0.58. 1Q marks yet another consecutive quarter of positive same-store growth, underscoring that improving new vehicle volume is a tailwind for KMX. The company posted +17% comps this quarter on volume, and results were further supported by strong income from CarMax Auto Finance (CAF), which came in at $87.0mm (BofAMLe $83.2mm). SG&A as a % of gross profit was 64.8% vs. our estimate of 70.0%, and declined YoY in terms of per- vehicle cost as KMX leveraged comp store used unit growth. KMX reiterated its plans to open 13 stores in FY14 and still plans to open 10-15 stores in FY15 & FY16. We continue to believe that store growth over the next several years along with a recovery in volumes should drive solid EPS growth."

CarMax closed on Thursday at $44.57.

Latest Ratings for KMX

DateFirmActionFromTo
Nov 2017Deutsche BankDowngradesBuyHold
Oct 2017OppenheimerDowngradesOutperformPerform
Oct 2017BerenbergInitiates Coverage OnHold

View More Analyst Ratings for KMX
View the Latest Analyst Ratings

Posted-In: Bank of America John MurphyAnalyst Color Reiteration Analyst Ratings

 

Related Articles (KMX)

View Comments and Join the Discussion!

Partner Center