Wedbush Reiterates Neutral Stance On CarMax Shares, $49 PT

In a report released today, Wedbush analyst Seth Basham reiterated a Neutral rating on CarMax Inc (NYSE:KMX) with a $49 price target.

Basham noted, “Having recently visited with senior management of Asbury’s used car superstore competitor, Q Auto, we continue to believe KMX has significant competitive advantages to help it grow in the long- term. However, the cyclical tailwinds driving sales from rapidly improving credit over recent years are becoming headwinds, creating more downside than upside risk to this volatile business in the near-medium term, and leaving us NEUTRAL on shares as KMX reports F2Q earnings on Tuesday, Sept. 23 BMO. While our F2Q EPS estimate of $0.65 is $0.02 below consensus, the key to the quarter will be used unit comps and third-party subprime penetration, in our view.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Seth Basham has a total average return of 9.6% and a 75.0% success rate. Basham is ranked #1180 out of 3282 analysts.

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