Morgan Stanley downgrades ‘range-bound’ CarMax to Equal Weight

As previously reported, Morgan Stanley analyst Daniela Haigian downgraded CarMax (KMX) to Equal Weight from Overweight with a price target of $35, down from $56. The pre-announcement of the deterioration in volume growth and degradation in execution and uncertainty around new leadership likely leave shares range-bound until investors can build confidence in the new CEO and transformation strategy, the analyst tells investors.