10:30 AM EDT, 04/10/2025 (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 by $20 to $95, based on a FY 27 (Feb.) P/E of 19.6x, a discount to KMX's five-year mean forward P/E of 23.1x. We lower our FY 26 EPS estimate by $0.40 to $3.90 and introduce FY 27 at $4.85. KMX posted Feb-Q EPS of $0.58 vs. $0.32 (+81%), short of the $0.66 consensus. The miss was driven by weaker-than-expected margins, as net sales rose 6.7% to $6.0B ($20M ahead of consensus) and gross margin expanded 70 bps to 11.1% (10 bps below consensus). The top-line increase was driven by a 6.2% increase in retail used sales volumes. KMX repurchased $99M of stock during the quarter. We recommend using the stock's sell-off as a buying opportunity, as we view KMX as one of the biggest winners from the impact of tariffs on the new vehicle market and consumers trading down to lower-cost used vehicles. While KMX pulled prior guidance related to long-term goals due to macroeconomic factors, we don't think investors should be alarmed and see Y/Y EPS growth of 21% in FY 26 and another 24% in FY 27.