Evercore cuts CarMax PT on macroeconomic woes

Vroom

21/12/2022 16:03

** Evercore ISI cuts PT of used-car retailer CarMax Inc
 KMX.N  to $63 from $64; says co battling with a tough cyclical
environment that could continue till first half of 2023  
    ** CarMax and peers Carvana Co  CVNA.N  and Vroom Inc's
 VRM.O  sluggish web traffic implies affordability a challenge
for inflation-squeezed low-to-middle income consumers - Evercore
    ** Brokerage says tighter lending is starting to take hold
as well; its survey shows 22% of auto dealers say customers
facing financing difficult 
    ** Brokerage J.P.Morgan also cuts co PT by $10 to $60, 
cites weak volume trends in industry and sharp drops in retail
pricing 
    ** 10 of 18 brokerages rate the stock "buy" or higher, seven
"hold" and one "sell"; their median PT is $69.50
    ** YTD, KMX down ~54% vs a ~98% fall in rival CVNA  
 (Reporting by Pratyush Thakur in Bengaluru)
 ((pratyush.thakur@thomsonreuters.com))