Wedbush Maintains Neutral On CarMax Following CAF Data
In a research note released August 18, Wedbush analyst Seth Basham reiterated a Neutral rating on CarMax (NYSE:KMX) with a $49 price target, as CAF portfolio performance continues to slightly weaken and spreads continue to compress.
Basham noted, “Recent CAF data point to continued incremental trend weakening. Delinquencies are increasing ahead of historical trends and spreads on new securitizations are narrowing with tightening terms. We continue to believe that the benefits from rapidly improving credit availability over the past two years are fading, which will slow car sales and CAF income growth.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Seth Basham has a total average return of 10.4% and a 80.0% success rate. Basham is ranked #1183 out of 3243 analysts.