Needham lowered the firm’s price target on CarMax (KMX) to $60 from $92 but keeps a Buy rating on the shares after its Q2 earnings miss. The company continues to struggle to find consistent footing with a return to negative unit comps and continued elevated loan losses as twin headwinds to earnings power, the analyst tells investors in a research note. The firm adds however that it sees a potential for a recovery in unit growth given the potentially one-time issues intra-quarter, also noting that the negative CAF – CarMax Auto Finance – earnings continue to be confined to 2022 and 2023 vintage loans.
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