CarMax price target lowered to $36 from $40 at Wedbush

Wedbush lowered the firm’s price target on CarMax (KMX) to $36 from $40 and keeps a Neutral rating on the shares. CarMax reported mostly in-line Q3 results, with revenue of $5.8B and retail units down 8% year over year, slightly ahead of expectations, while retail average selling prices and gross profit per unit exceeded projections, the analyst tells investors in a research note. Management is focused on a multi-quarter turnaround, emphasizing price competitiveness, customer experience, digital monetization, cost reduction, and profitable growth, though near-term margin pressure is expected from lower ASPs and increased marketing spend, Wedbush says.