CarMax, Inc. (NYSE:KMX) reported its Q2 results, marked with slowing unit and profit growth.

Analysts at Wedbush lowered their price target on the company to $135 from $150 on profit miss, particularly used retail gross profit per unit (GPU), which was disappointing given a favorable pricing environment and an estimated $250 per unit year-over-year benefit from a sharply increased mix of customer-sourced vehicles.

This is particularly surprising given the fact that the company took its generated GPU savings from a stronger self-sufficiency ratio and invested in price to remain more competitive as it focuses on market share.

While the company continues to execute on its initiatives and remains focused on gaining market share by taking its generated GPU savings from a stronger self-sufficiency ratio and investing in price to remain more competitive, lack of upside in retail GPU and elevated SG&A spending keeps the analyst on the sidelines.