Stephens cuts CarMax's PT, cites weakening demand

Stephens cuts price target on used-car retailer CarMax KMX.N to $36 from $39, maintains "equal-weight" rating

New PT a downside of 8.5% from stock's last close

On Thursday, KMX reported a drop in Q3 revenue and profit, hurt by weaker demand and falling prices of used vehicles in the U.S.

Shares of KMX marginally down 1% premarket

Brokerage says KMX’s customer base is shifting from mid-prime buyers toward lower-credit customers and older vehicles

Says this shift is leading to higher credit risk and lower gross profit per unit

Stephens cuts KMX's Q4 26 EPS estimate from $0.01 to -$0.08 and FY27 EPS estimate from $2.16 to $1.63

As of last close, shares down 51.9% YTD