12:20 PM EDT, 09/25/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our 12-month target to $60 from $100, based on a FY 27 P/E of 15.0x, a justified discount to KMX's 10-year mean forward P/E of 19.9x. We lower our adjusted EPS estimates to $3.35 from $4.25 for FY 26 and to $4.00 from $4.95 for FY 27. Following a disappointing earnings release, we are lowering our rating on KMX one notch to Buy. While we remain positive on the story over the intermediate term given various tailwinds that should favor used vehicle sales, poor management execution, an inconsistent earnings track record, and margin-related concerns cause us to take a less bullish stance. However, we view the sell-off as an overreaction, as the combination of cost cuts and lower interest rates should drive improved results in the coming quarters. We also think KMX is likely to boost share repurchases even further, noting its $384M of buybacks in the first two quarters of FY 26 (vs. the $428M repurchased during all of FY 25). We think the release could pique the interest of activist investors as well.