Benzinga | Oct 1, 2021 01:17PM EDT

Guggenheim Downgrades CarMax To Neutral

* Guggenheim analyst Ali Faghri downgraded CarMax Inc (NYSE:KMX) to Neutral from Buy without a price target.

* Faghri continues to have a positive medium- to long-term view on the company and its ability to be an omnichannel leader.

* Meanwhile, the analyst has listed several factors, including constrained inventory, recent direct-from-consumer sourcing improvements that aren't translating to higher GPU, and elevated SG&A that will likely limit near-term earnings potential upside.

* Related Content: Why CarMax Shares Are Hitting The Brakes Today

* Price Action: KMX shares are trading lower by 1.23% at $126.39 on the last check Friday.