CarMax downgraded to In Line at Evercore ISI after Q2 report

As previously reported, Evercore ISI analyst Michael Montani downgraded CarMax (KMX) to In Line from Outperform with a price target of $52, down from $80. Q2 results show pressure on market share and credit are intensifying, with reinvestment likely needed to stabilize share, the analyst tells investors in a post-earnings note. The firm, which is reducing its EPS estimate to $3.30 for this year, believes a GPU reset maybe needed as initiatives are not driving topline growth and believes competition is part of the challenge, noting that Carvana (CVNA) is set to grow used units 40%-plus year-over-year.