CarMax, the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Rajat Gupta CFA from J.P. Morgan upgraded the rating on the stock to a Hold and gave it a $58.00 price target.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Rajat Gupta CFA has given his Hold rating due to a combination of factors impacting CarMax’s current market position. The company’s stock has underperformed against broader indices and its peers in the auto retail ecosystem over various timeframes. Despite trading below its long-term average multiples, CarMax faces ongoing challenges, including disappointing execution in strategic initiatives and a lack of leverage from its omni-channel investments.
CarMax’s competitive position has been further pressured by the resurgence of peers like Carvana, which has demonstrated significant growth and better unit economics. While there is potential for modest support from a recovery in late-model used car supply starting in 2026, and a steady pace of share buybacks, there remains a risk if market share and margins do not improve. The Hold rating reflects the need for CarMax to prove its ability to recover market share and improve financial performance before the stock can be considered for a more favorable rating.
In another report released on July 25, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $65.00 price target.