Guggenheim Downgrades CarMax To Neutral

Guggenheim analyst Ali Faghri downgraded CarMax Inc (NYSE:KMX) to Neutral from Buy without a price target.
Faghri continues to have a positive medium- to long-term view on the company and its ability to be an omnichannel leader.
Meanwhile, the analyst has listed several factors, including constrained inventory, recent direct-from-consumer sourcing improvements that aren't translating to higher GPU, and elevated SG&A that will likely limit near-term earnings potential upside.
Related Content: Why CarMax Shares Are Hitting The Brakes Today
Price Action: KMX shares are trading lower by 1.23% at $126.39 on the last check Friday.