TSX up after index logs fresh record high close
Investing.com - HSBC upgraded Copart (NASDAQ:CPRT), a $46.5 billion market cap company, from Hold to Buy on Thursday, raising its price target to $62.00 from $56.00. The company currently trades at $48.12, with a P/E ratio of 31.29.
The upgrade comes as Copart shares have fallen approximately 20% since its third-quarter fiscal 2025 results were released on May 22, while the S&P 500 gained 10% during the same period.
HSBC attributes the stock decline to market concerns about stalling growth in volumes from insurers, rising uninsurance rates, and improving performance from Copart’s main competitor.
Despite these short-term challenges, HSBC believes the slower volume growth is likely temporary and notes that Copart has other levers to drive continued earnings expansion, including margins and share buybacks.
The research firm highlighted Copart’s impressive track record of growth, with 14% revenue CAGR, 19% operating income CAGR, and 23% EPS CAGR from 2015 to 2024, suggesting the recent share price decline provides an entry point to a high-quality company with attractive long-term growth potential.
In other recent news, Stephens has initiated coverage on Copart with an Equal Weight rating and set a price target of $50. The research firm emphasized Copart’s exceptional historical performance, noting that a $100,000 investment in the company on January 1, 2009, would be valued at $2.9 million today. This performance notably surpasses the returns of both the S&P 500 and Berkshire Hathaway Class A shares over the same timeframe. While Stephens acknowledges Copart’s strong track record, the Equal Weight rating suggests a neutral stance on the stock’s future prospects. Investors may find this analysis useful as they consider the company’s past achievements and potential future trajectory. These developments reflect recent evaluations by analysts in the market.
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