CarMax price target lowered to $59 from $81 at RBC Capital

RBC Capital lowered the firm’s price target on CarMax (KMX) to $59 from $81 and keeps an Outperform rating on the shares. The company’s Q2 results were “disappointing” as net sales and earnings declined by 6% and 25% respectively, sparking a debate around whether weakness was timing/execution related or indicative of a deteriorating macro, the analyst tells investors in a research note. RBC adds that given the limited visibility, it is reducing its sales expectations through FY27, cutting its Q3 sales growth view to down 2.3% from up 1.4% and its FY25 and FY26 view to down 1% and up 0.7% from 1.9% and 3.9% respectively.