CarMax’s Overweight Rating Maintained at Morgan Stanley, Price Target Cut to $75
<p>Morgan Stanley maintained its Overweight rating on <a href='https://financialmodelingprep.com/financial-summary/KMX'>CarMax (NYSE:KMX)</a> but lowered its price target from $90 to $75 per share. In a note to clients, the analysts explained that CarMax's forecasts are "first in" the downturn of the used car market, and the multiple has significantly decreased on a normalized/recovered earnings basis. </p>
<p>Despite the challenges facing the used car market, analysts remain relatively positive on CarMax, as earnings revisions for the fiscal year 2023 have taken the company's forecast to levels that are less than half those achieved before the COVID-19 pandemic.</p>
<p>The analysts added that CarMax has consistently generated more than $2,000 in gross profit per unit (GPU) even in the current downturn of the used car market and it has one of the strongest balance sheets amongst the used car dealers.</p>

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