JPMorgan is pumping the brakes on shares of CarMax.
JPMorgan is pumping the brakes on shares of CarMax . Analyst Rajat Gupta downgraded the used vehicle stock to underweight from neutral, saying that the risk-reward looks skewed to the downside as the potential for lower earnings revisions linger. "To be clear, we believe KMX is likely to be a long-term share gainer in the used car market and see investments over the last 3 years ultimately bearing fruit," Gupta wrote in a note to clients Wednesday.
CarMax benefitted from an increase in prices and demand for used cars. But that boom seemingly came to a shuttering halt in recent months as consumers faced high inflation, high interest rates, recession fears and a shift in spending patterns. According to Gupta, Wall Street is also failing to accurately account for downside risks to overall earnings. CarMax's auto finance business, in particular, could face rising delinquencies in a downturn and an increase in charge-offs.
Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
CarMax, Carvana, And Vroom Opt Out Of This Year's Super Bowl | CarscoopsCarMax, Carvana, And Vroom Opt Out Of This Year's Super Bowl | Carscoops carscoops
Weiterlesen »
JPMorgan touts editor job with $30,000 ‘annual restaurant budget’Banking giant JPMorgan Chase is seeking to lure a food editor by offering a “$30,000 annual restaurant budget” in an effort to drive clients to its credit card business.
Weiterlesen »
China's reopening could boost Australia's economy by 1%, JPMorgan saysAustralia's economy could be no small beneficiary of an end to China's zero-Covid policy over the next two years, according to JPMorgan.
Weiterlesen »
JPMorgan CEO Lambasts Bitcoin as “Decentralized Ponzi Scheme”JPMorgan CEO Jamie Dimon remains a staunch critic of cryptocurrencies, describing them as a 'decentralized Ponzi scheme'
Weiterlesen »
JPMorgan’s Jamie Dimon more optimistic on US consumerJPMorgan Chase CEO Jamie Dimon weighed in on the American consumer and the state of the current economy in an interview with FOX Business' Maria Bartiromo.
Weiterlesen »
JPMorgan Chase CEO Jamie Dimon sticks to hiring plans and dials back prediction of economic ‘hurricane’CEO lambastes FTX as a 'decentralized Ponzi scheme' and says JPMorgan continues to add staff as it opens more branches around the globe.
Weiterlesen »