Market Overview

UPDATE: Goldman Sachs Downgrades CarMax on Strong Growth Story, Expected Headwinds

Share:

In a report published Wednesday, Goldman Sachs analyst Matthew J. Fassler downgraded the rating on CarMax (NYSE: KMX) from Buy to Neutral, but raised the price target from $53.00 to $55.00.

In the report, Goldman Sachs noted, “Over the past four quarters, KMX has begun to deliver on the promise of improving used vehicle supply, driving accelerating SSS growth, fine-tuning its expense management, and meeting or exceeding earnings expectations, ending a period of sustained underperformance. Since being added to the Buy list on 11/29/2012, KMX is +43% vs. +20% for the S&P 500 and +26% for the S&P Retail Index (RLX). At the same time, data from recent securitizations suggests credit profits are likely to decline in 2014; tougher compares in the core business and credit dynamics are likely to lead to slowing earnings growth. We lower our rating to Neutral.”

CarMax closed on Tuesday at $51.79.

Latest Ratings for KMX

DateFirmActionFromTo
Dec 2020Morgan StanleyMaintainsOverweight
Dec 2020JP MorganDowngradesOverweightNeutral
Nov 2020B of A SecuritiesMaintainsBuy

View More Analyst Ratings for KMX
View the Latest Analyst Ratings

 

Related Articles (KMX)

View Comments and Join the Discussion!

Posted-In: Goldman Sachs Matthew J. FasslerAnalyst Color Downgrades Analyst Ratings

Latest Ratings

StockFirmActionPT
FBKeyBancMaintains360.0
CVLTKeyBancMaintains70.0
CLRKeyBancMaintains23.0
AZPNKeyBancMaintains158.0
TWTRKeyBancUpgrades65.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com