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Evercore ISI reiterates In Line rating on CarMax stock at $45

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Published 04/15/2026, 06:50 AM
Evercore ISI reiterates In Line rating on CarMax stock at $45
KMX-1.30%

Investing.com - Evercore ISI reiterated an In Line rating on CarMax Inc. (NYSE:KMX) with a $45.00 price target. The firm noted the company reported its first quarter with CEO Keith Barr leading the business.

Retail used unit comparable sales declined 1.9%, an improvement from the firm’s expectation of a 3% decline and better than prior high single-digit decreases. The company invested $200 per unit in gross profit in the fourth quarter.

Evercore ISI reduced its fiscal 2026 earnings per share estimate by $0.20 to $2.30 and its fiscal 2027 estimate by $0.10 to $2.70. The consensus EPS forecast for FY2026 stands at $2.79, while the stock trades at a P/E ratio of 15.51. According to InvestingPro analysis, CarMax appears undervalued at current levels, placing it among stocks on the platform’s Most Undervalued list. The firm said sustaining a positive 3% to 4% retail used unit comparable is necessary to drive operating leverage.

CarMax is expected to provide updates on its turnaround plan during its June 19 earnings release. A possible investor day may follow after management outlines its strategy. Investors seeking deeper analysis can access a comprehensive Pro Research Report on CarMax, one of 1,400+ US equities covered with expert insights on InvestingPro.

The firm said the stock is likely to be driven by macroeconomic factors, master trust credit updates, and monthly sales trends in the near term.

In other recent news, CarMax Inc. reported its fiscal Q4 2026 earnings, surpassing earnings per share (EPS) forecasts. Despite this positive earnings surprise, the company experienced a decline in revenue compared to the previous year. In leadership updates, CarMax announced the appointment of Keith Barr as its new CEO, effective March 16, 2026. Under Barr’s upcoming leadership, the company plans to lower average selling prices and gross profit per unit in an effort to drive higher sales volume. Meanwhile, Truist Securities maintained its Hold rating on CarMax, setting a price target of $37. These developments highlight the company’s ongoing strategic adjustments and market challenges.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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