Oppenheimer Lowers PT To $38 On KMX

Oppenheimer has lowered its price target from $41 to $38 on CarMax (NYSE: KMX) in advance of Q1 results, which are to be released on June 22.

In the report, Oppenheimer writes, “We have for some time looked upon CarMax as one of the most attractive mid-cap names within the Hardlines Sector. Our positive intermediate to longer term investment thesis on KMX is intact. The chain remains in the early stages of reaccelerating new unit expansion and stands to benefit significantly as auto demand improves further amid easing economic pressures. KMX will report Q1 (May) results on Jun. 22nd. Recent disruptions in the auto supply chain together with higher gas prices and unfavorable weather likely weighed somewhat upon results at KMX lately. We have modestly trimmed EPS forecasts for KMX. Any potential impact should prove short term. Recent weakness in KMX shares makes for an attractive buying opportunity, in our view.”

Oppenheimer maintains its Outperform rating on the stock.

KMX closed yesterday at $27.09.