Wedbush raised the firm’s price target on CarMax to $100 from $90 and keeps an Outperform rating on the shares. The firm remains constructive on CarMax into Q4 earnings. Wedbush expects a mostly in line Q4, but now sees EPS upside later in 2024 through 2026 from normalizing CAF metrics, sustained GPU levels and better SG&A leverage. An improvement in demand into the key tax refund season and Leap Day likely aided comps to close Q4, leading the firm to increase its comp estimate to -1.5% vs. consensus’ flat estimate and EPS of 40c vs. consensus’ 41c. Wedbush is optimistic on CarMax into 2024 given an improving macro backdrop consisting of positive unit growth, prospects for easing credit conditions and improving affordability.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on KMX:
- CarMax price target raised to $100 from $88 at Seaport Research
- Wells Fargo downgraded, Best Buy upgraded: Wall Street’s top analyst calls
- Early notable gainers among liquid option names on March 20th
- Needham upgrades ‘industry leader’ CarMax into market recovery
- CarMax upgraded to Buy from Hold at Needham