CarMax moves lower after JPMorgan turns cautious on near-term

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JPMorgan downgraded CarMax (NYSE: KMX) to a Neutral rating after having the auto retailer set at Overweight.

The firm said it thinks FY23 estimates on CarMax (KMX) need to be reset materially and said building conviction on an inflation in growth next year is challenging amidst the worsening affordability backdrop.

Analyst Ryan Brinkman and team pointed to potential downside for shares to $ 75 in the near-term and assigned a December 2022 price target of $ 110.

“The COVID-19 pandemic accelerated the company’s omnichannel rollout, though we are yet to see significant thrust from these initiatives on growth rates as the company continues to be impacted from occupancy restrictions.”

Shares of CarMax (KMX) fell 1.75% in premarket trading on Wednesday to $ 91.70.

Dig into details on KMX’s Q4 earnings report that dropped on Tuesday.

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