William Blair analyst Sharon Zackfia downgraded CarMax (KMX) to Market Perform from Outperform. While the firm had “held out hope” that $150M of cost cuts over the next 18 months would provide a floor for the stock, “those hopes were dashed” with the company’s pre-announced expectations for an 8%-12% used unit comp decline in the November quarter, the analyst tells investors. The firm cites both worsening trends and the CEO transition for its downgrade.
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