Baird Cuts Copart (CPRT) PT to 52 Due to Persistent Insurance Industry Headwinds

Copart Inc. (NASDAQ:CPRT) is one of the best QQQ stocks to buy according to Wall Street analysts. On November 21, Baird cut the firm’s price target on Copart to $52 from $55 and kept an Outperform rating on the shares. This sentiment was posted as a part of the firm’s broader update on its model as insurance headwinds persist.

In other news, Copart also posted its Q3 2025 earnings report on the same day, where the company disclosed making a total revenue for the quarter increased just under 1% year-over-year to $1.16 billion, but showed 2.9% growth when excluding the non-recurrence of catastrophic events from the prior year. This led to a gross profit increase of 4.9% to $537 million, with the gross margin improving by 1.84% to 46.5%. Net income rose by 11.5% to $404 million, and EPS increased by 10.8% to $0.41.

Profitability for the said quarter was largely driven by an increase in average selling prices/ASPs and auction liquidity. Global insurance ASPs grew by 6.8%, with US insurance ASPs reaching an all-time high, increasing by 8.4% from the prior year. This price strength contributed to a 12.3% increase in gross profit per fee unit and a higher US Gross Margin of 48.7%.

Copart Inc. (NASDAQ:CPRT) provides online auctions and vehicle remarketing services in the US, the UK, Germany, Brazil, Canada, the UAE, Spain, Finland, Oman, the Republic of Ireland, and Bahrain.

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.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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