CarMax Shares Get a Boost from RBC Capital
A recent research note from RBC Capital analyst Steven Shemesh has sent CarMax (KMX) shares soaring, with the firm raising its price target to $103 from $99 and maintaining an Outperform rating. This comes on the heels of the company’s impressive Q3 earnings beat, which saw retail comp used unit sales increase by 4.3% – surpassing the 3.2% consensus.
Driving Growth: Average Selling Prices and Cost Discipline
The key driver behind this growth was a 3.9% decline in average selling prices to $26,153. This, combined with the company’s focus on cost discipline, has led to a sense of optimism around the CarMax story. While some may still have concerns about market share trends and provision for loan losses, the momentum is undoubtedly building.
A Brighter Outlook for CarMax
With retail unit sales showing signs of strength for the second consecutive quarter, it’s becoming increasingly difficult to ignore the progress CarMax is making. As the company continues to execute on its strategy, investors are likely to take notice. While there may still be some skepticism around certain aspects of the business, the overall trend is undeniably positive.
What’s Next for CarMax?
As the company looks to build on this momentum, investors will be keeping a close eye on its progress. With a strong Q3 earnings report under its belt, CarMax is well-positioned to continue its upward trajectory. While there may be some bumps along the way, the outlook for this company is undoubtedly bright.
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