CarMax downgraded to Hold from Buy at Argus

Argus analyst Taylor Conrad downgraded CarMax to Hold from Buy with no price target. The analyst believes that used vehicle retailers like Car-Max will struggle in the near term given their rapidly depreciating inventory and are unlikely to buy as many vehicles. Reduced inventory will then lead to lower sales and lower margins, with the harsh economic environment also influencing sales as consumers remain cautious, Conrad tells investors in a research note. The analyst sees the stock’s valuation as "reasonable" at 15-times forward earnings vs. 13-20 times historical range.