America’s Car-Mart price target lowered by $52 at Stephens, here’s why

Stephens lowered the firm’s price target on America’s Car-Mart to $83 from $135 and keeps an Overweight rating on the shares. Though the firm had expected credit deterioration, it is more cautious in the near-term on the combination of a lack of visibility into near-term credit performance despite tighter underwriting and recent delinquency improvements and sales weakness, which it attributes to a combination of tougher car affordability and sales disruptions as Car-Mart upgrades its Loan Origination System.