CarMax "neutral," target price reduced

05/13/04 - Banc of America

NEW YORK, May 13 (New Ratings) - Analysts at Banc of America Securities reiterate their "neutral" rating on CarMax Inc (KMX), while reducing their estimates for the company. The target price has been reduced from $28 to $23.

In a research note dated May 12 and published this morning, the analysts mention that CarMax has reduced its FQ1 earnings and comps guidance due to cyclical factors. The company now expects to post comp sales of –2% to –4% and EPS of $0.30-$0.32, respectively. The EPS estimates for FY04 and FY05 have been reduced from $1.17 to $1.15 and from $1.34 to $1.32, respectively.