Stephens Initiates Coverage of Copart (CPRT) Stock

Copart, Inc. (NASDAQ:CPRT) is one of the Best Stocks to Buy According to Brasada Capital Management. On July 8, Stephens analyst Jeff Lick initiated coverage of the company’s stock with an “Equal Weight” rating and a price objective of $50, as reported by The Fly. As per the firm’s analyst, the stock’s healthy absolute and relative performance is and was due to the robust operational execution, strategic planning, among other factors. That being said, the firm also noted that the current setup of elevated valuation, slowing profit growth, and increased competitive and macro-economic uncertainty results in a more challenging 12 – 24 months backdrop, resulting in a neutral rating for Copart, Inc. (NASDAQ:CPRT)’s stock.

The rise in service revenues for Copart, Inc. (NASDAQ:CPRT) during the 3 months ended April 30, 2025 of $88.2 million, or 9.3% YoY, was because of an increase in the US of $67.9 million and an increase in International of $20.3 million. While the US growth was because of an increase in revenue per car, the international growth (after excluding unfavourable fluctuations in currency exchange rates of $0.8 million) was mainly because of an increase in revenue per car and higher volume.

Madison Investments, an investment advisor, released its Q2 2025 investor letter. Here is what the fund said:

“The bottom five detractors for the quarter were Fiserv, Arch Capital Group, Copart, Inc. (NASDAQ:CPRT), Alcon, and Progressive. Shares in Copart lagged the market following quarterly results that showed an uncharacteristic disappointment in volume growth. We believe this was due to temporary factors and the stock was simply coming down from an elevated valuation multiple.”

While we acknowledge the potential of CPRT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.