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Oppenheimer Cuts CarMax To Hold, Softer Sales Could Cap Multiple

CarMax (KMX) reported better-than-expected second-quarter earnings Tuesday, but sales were light, and investors pushed the shares down for the day.

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That was the right move, according to Oppenheimer’s Brian Nagel and Dan Farrell, who cut their rating on the shares from Outperform to Perform, with a $77 price target. They write that they still see CarMax as one of the most innovative business models in the space, and their long-term bull thesis is unchanged. However, they are concerned about the near-term outlook, given softer used car sales trends. These could...


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