As previously reported, Evercore ISI analyst Michael Montani downgraded CarMax (KMX) to In Line from Outperform with a price target of $52, down from $80. Q2 results show pressure on market share and credit are intensifying, with reinvestment likely needed to stabilize share, the analyst tells investors in a post-earnings note. The firm, which is reducing its EPS estimate to $3.30 for this year, believes a GPU reset maybe needed as initiatives are not driving topline growth and believes competition is part of the challenge, noting that Carvana (CVNA) is set to grow used units 40%-plus year-over-year.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on KMX:
- CarMax downgraded to In Line from Outperform at Evercore ISI
- Wedbush Downgrades CarMax Stock (KMX) on ‘Weak’ Results, Cuts Price Target by 35%
- CarMax downgraded to Perform from Outperform at Oppenheimer
- CarMax Inc. Reports Q2 Fiscal 2026 Earnings
- CarMax Earnings Call: Strategic Moves Amid Challenges