Needham has adjusted its price target for CarMax (KMX, Financial), decreasing it from $101 to $92, while maintaining a Buy rating on the stock. This change follows the company's recent fourth-quarter results. The firm believes CarMax is well-positioned to benefit from an improved market for used vehicles and the strategic utilization of its omni-channel investments. However, the disappointing comparable sales figures could temper investor excitement, despite used cars offering relative safety compared to other retail sectors.
The broader economic setting presents renewed challenges, with some concerns arising over rising average sales prices for used vehicles and potential demand reduction similar to what occurred in fiscal year 2022. Nonetheless, Needham suggests this scenario is less likely this time around due to notably different market conditions.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 14 analysts, the average target price for CarMax Inc (KMX, Financial) is $88.16 with a high estimate of $105.00 and a low estimate of $56.00. The average target implies an upside of 31.00% from the current price of $67.30. More detailed estimate data can be found on the CarMax Inc (KMX) Forecast page.
Based on the consensus recommendation from 19 brokerage firms, CarMax Inc's (KMX, Financial) average brokerage recommendation is currently 2.2, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for CarMax Inc (KMX, Financial) in one year is $78.16, suggesting a upside of 16.14% from the current price of $67.3. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the CarMax Inc (KMX) Summary page.
