BofA lowered the firm’s price target on CarMax (KMX) to $45 from $63 and keeps an Underperform rating on the shares. Fiscal Q2 EPS of 64c was below the firm’s estimate of $1.10 and the Bloomberg consensus of $1.03 as soft results were driven by higher depreciation and a pull-forward in demand, the analyst tells investors. Following the report, the firm is applying a lower multiple to its estimates to reflect supply headwinds and potential for share losses to Carvana (CVNA), the analyst noted.
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