CarMax downgraded to Hold at Benchmark on ‘significantly clouded’ visibility

As previously reported, Benchmark downgraded CarMax (KMX) to Hold from Buy and removed the firm’s prior $60 price target after the company announced preliminary results this morning that were “not good.” In “equally big news,” board member David McCredight has been named the interim President and CEO and Chair Tom Folliard has been named interim Executive Chair of the Board as a search for a new permanent CEO is underway. For long-term investors, current levels may prove attractive, but near-term visibility is now “significantly clouded” and the firm is downgrading until there is clarity on how much of the deterioration is structural versus cyclical, the analyst tells investors.