JPMorgan downgraded CarMax (KMX) to Underweight from Neutral with a price target of $30, down from $50. The company’s preliminary Q3 results show additional market share loss and margin pressure “that is likely to a take a while to arrest,” the analyst tells investors in a research note. The firm sees no quick fix to CarMax’s share loss in the near- to medium-term. Estimates are likely to move materially lower in the near-term along with a “structural derating” of the stock’s multiple closer to the average public franchise dealer, JPMorgan contends.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on KMX:
- CarMax downgraded to Underweight from Neutral at JPMorgan
- CarMax downgraded to Hold at Benchmark on ‘significantly clouded’ visibility
- CarMax downgraded to Hold from Buy at Benchmark
- CarMax downgraded to Market Perform from Outperform at William Blair
- CarMax appoints board member David McCreight as interim CEO