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CarMax emphasis on non-prime meant to address Carvana, says Morgan Stanley

CarMax emphasis on non-prime meant to address Carvana, says Morgan Stanley

Morgan Stanley says CarMax’s (KMX) fiscal Q1 results were “largely in line,” but notes that the report continued to show lower same store volume and higher SG&A spending. The “story” of the quarter is increased emphasis into non-prime lending, which “seems meant to address” part of the market where CarMax has been losing out to Carvana (CVNA), added the analyst, who has an Overweight rating and $80 price target on CarMax shares.

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