synopsis

Wedbush said while tariffs could raise parts costs, the overall impact on reconditioning expenses is limited, and CarMax is largely shielded from supply disruptions as it sources most inventory independently.

CarMax (KMX.N) is well-positioned to capture greater market share in the used car sector, supported by its omnichannel platform, a stable pricing environment, and rising demand for late-model used vehicles, according to Wedbush.

According to a report in MT Newswires, the brokerage said CarMax remains confident in its growth prospects, even after withdrawing its long-term targets due to macroeconomic uncertainty.

Wedbush noted that used car store sales picked up in March and April, driven by consumer concerns over the potential rise in prices of new vehicles from tariffs.

It added that CarMax’s focus on newer used models and operational efficiency makes it well-suited to benefit from the shift.

Earlier this month, CarMax reported fourth-quarter profit and car sales that missed analyst estimates.

The company also removed the timeline for some of its long-term targets, such as selling more than 2 million retail and wholesale units annually between fiscal 2026 and 2030.

Wedbush said while tariffs could raise parts costs, the overall impact on reconditioning expenses is limited, and CarMax is largely shielded from supply disruptions as it sources most inventory independently.

Wedbush maintained its ‘Outperform’ rating on CarMax, with a price target of $90, implying an over 44% upside from the last closing price.

On Stocktwits, the retail sentiment jumped to 'Neutral' from 'Bearish' a day ago.

KMX sentiment and message volume as of April 21 | Source: Stocktwits

Users noted that as tariffs drive up prices, more consumers are expected to turn to used cars—making it a logical time to load up on CarMax shares.

CarMax stock is down 23.8% year to date.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<