William Blair analyst Sharon Zackfia has reiterated their bullish stance on KMX stock, giving a Buy rating on April 21.
Sharon Zackfia has given her Buy rating due to a combination of factors that highlight CarMax’s potential for significant growth. The company is poised to achieve high-teens annual EPS growth driven by a moderate increase in used car sales. This growth is expected despite past challenges such as the pandemic and inflation in the used car market.
CarMax’s strategic investments in an omnichannel customer experience are set to be fully marketed, potentially expanding its customer base and enhancing operational efficiencies. The company’s scale provides advantages in vehicle sourcing, allowing for better pricing and inventory management. These factors, along with the goal of reducing the SG&A-to-gross-profit ratio, position CarMax to gain market share and improve profitability, justifying the Buy rating.
According to TipRanks, Zackfia is a 5-star analyst with an average return of 12.0% and a 50.23% success rate. Zackfia covers the Consumer Cyclical sector, focusing on stocks such as CarMax, Lululemon Athletica, and Royal Caribbean.
In another report released on April 21, Wedbush also maintained a Buy rating on the stock with a $90.00 price target.