01:05 PM EDT, 06/20/2025 (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 raise our 12-month target by $5 to $100, based on a FY 27 (Feb.) P/E of 20.2x, a premium to KMX's five-year mean forward P/E of 22.6x, justified by market conditions we consider early-cycle. We increase our EPS estimates to $4.25 from $3.90 for FY 26 and to $4.95 from $4.85 for FY 27, implying Y/Y EPS growth of 32% and 16%, respectively. Following much better-than-expected May-Q results, we reiterate our Strong Buy opinion on KMX, our top pick in auto retail. We consider KMX a winner from the trend of consumers trading down to more affordable used vehicles and think the Street is underestimating KMX's margin growth potential in the extremely large and fragmented U.S. used vehicle market. As one of the more tech-savvy auto retailers, we think KMX's earnings growth is likely to outpace competitors on productivity improvements from AI, omnichannel, digital marketing and other initiatives. We were also encouraged by KMX's more than doubling of share repurchases on a sequential basis during the quarter.