CarMax (KMX) is likely to post a "solid" fiscal Q1, with comparable sales likely to grow in the mid single-digit range, Truist said in a note Wednesday.
According to the firm, Q1 comparable sales are likely to fall in the 6% to 7% range compared with Truist's own forecast of 8% growth.
Truist analysts said they believe the quarter "started strong," as consumers sought to buy before tariff-related price increases but subsequently faded by May as "pull-forward activity eased."
Sales are seen to have turned "slightly negative by May," which most likely led to a more moderate start in Q2 and may be a cause for some concern in Q2 and the full-year, according to the note.
The analysts said they believe "sales could have been impacted simply by the pull-forward or, potentially, tighter credit standards or the continuing pressures from competitive source."
Truist has a hold rating on the stock with a $72 price target.
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