RBC Capital Markets analyst Steven Shemesh reiterated an Outperform rating on CarMax Inc (NYSE: KMX), lowering the price target to $80 from $90.
KMX's net revenues were $7.1 billion, down 13.1% from the prior year's second quarter.
Shemesh thinks the quarter had several puts and takes, but weaker-than-anticipated comps ultimately drove a modest EPS miss and sell-off on the day of the earnings report.
While strong cost discipline is a positive thing, the analyst cautioned that growing affordability issues are likely to put a lid on the upside in the near future.
Also Read: Deflation Rocks Used Car Market, Price ...