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 opened today at $79.30, close to its 52-week high of $81.67.
Nagel wrote:
“We look quite favorably upon the better than expected Q2 (Aug.) results reported today by Outperform-rated CarMax (KMX). Consistent with our positive call on KMX and our upbeat Q2 preview last week (note here), used car unit comps at the chain picked up in the quarter. We are optimistic that a significant easing in used car comp comparisons should help fuel a further acceleration in top-line trends through the second half of FY18 (Feb. 2019). Beyond improving comps, we are decidedly encouraged by KMX’s efforts to further leverage its strengthening digital infrastructure to better connect with consumers. Our $88 price target implies upside potential of more than 10% from current levels.”
According to TipRanks.com, Nagel is a 5-star analyst with an average return of 10.6% and a 66.3% success rate. Nagel covers the Services sector, focusing on stocks such as Weight Watchers International, Lululemon Athletica Inc, and Dick’s Sporting Goods.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for CarMax with a $88.50 average price target.
See today’s analyst top recommended stocks >>
Based on CarMax’s latest earnings release for the quarter ending May 31, the company reported a quarterly net profit of $239 million. In comparison, last year the company had a net profit of $181 million.
Based on the recent corporate insider activity of 85 insiders, corporate insider sentiment is negative on the stock.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
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.
