In a report released today, Brian Nagel from Oppenheimer maintained a Buy rating on CarMax (NYSE: KMX), with a price target of $88. The company’s shares closed yesterday at $78.45, close to its 52-week high of $81.67.
Nagel wrote:
“Earlier in 2018, we upgraded CarMax (KMX) to Outperform, upon a historically discounted valuation and prospects for steadily improving used car unit comps at the chain (Jan. 18th at $69.84, Note Here). KMX is set to report Q2 (Aug.) results on Wed., Sept. 26th, before the market open. Shares tend to trade volatilely around quarterly announcements. As we evaluate recent CarMax and sector data points, we do not necessarily expect an “all clear” report from KMX. That said, we do believe that industry fundamentals have further firmed over the past few months and that with Q2 in the rearview mirror, investors will increasingly look toward prospects for much easier comp comparisons. Our $88 price target suggests upside of over +10% from current levels.”
According to TipRanks.com, Nagel is a 5-star analyst with an average return of 10.6% and a 66.5% success rate. Nagel covers the Services sector, focusing on stocks such as Weight Watchers International, Lululemon Athletica Inc, and Dick’s Sporting Goods.
Currently, the analyst consensus on CarMax is a Moderate Buy with an average price target of $86.56.
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CarMax’s market cap is currently $13.86B and has a P/E ratio of 20.70. The company has a Price to Book ratio of 4.10.
Based on the recent corporate insider activity of 85 insiders, corporate insider sentiment is negative on the stock.
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CarMax, Inc. is as a holding company, which engages in retailing of used vehicles and wholesale vehicle auction operator. It operates through the CarMax Sales Operations and CarMax Auto Finance (CAF) segment.
