William Blair analyst Sharon Zackfia has reiterated their bullish stance on KMX stock, giving a Buy rating on March 26.
Sharon Zackfia’s rating is based on the anticipation of a strong fourth-quarter performance for CarMax, driven by an increase in used unit sales. The analysis suggests that CarMax’s used unit comps are expected to rise significantly, marking the strongest performance since the third quarter of 2021. This positive outlook is supported by a projected increase in retail average selling prices and a substantial rise in revenue, surpassing consensus expectations.
Furthermore, Zackfia anticipates a healthy retail gross profit per unit, with an increase that exceeds market consensus. Although there is an expected decline in wholesale gross profit per unit, the overall financial outlook remains positive with an increase in earnings per share estimates. These factors combined contribute to the Buy rating, reflecting confidence in CarMax’s ability to outperform market expectations in the upcoming quarter.
In another report released on March 26, Stephens also upgraded the stock to a Buy with a $90.00 price target.