Barrington analyst Gary Prestopino has maintained their neutral stance on CPRT stock, giving a Hold rating today.
Gary Prestopino has issued a Hold rating on Copart’s stock due to a multitude of factors.
Firstly, Copart’s Q1/24 financial results were robust as the revenue and EPS exceeded the projections. The revenue growth was mainly driven by an increase in the average revenue per unit and boosted volume. However, global purchased vehicle sales saw a slight dip due to a decline in the powersports business in the U.S, which was partially offset by a surge in Copart Direct Cash for Cars purchase vehicle revenue.
Furthermore, the company’s gross profit surged by 25.6%, largely attributed to a mix shift due to growth in fee units in the U.S. Yet, G&A expenses also saw an uptick, partly due to a one-time maintenance project.
The strong revenue growth coupled with moderate operating expense increases led to a substantial increase in operating income, which in turn led to a rise in GAAP net income. Despite these promising figures, the U.S. business experienced a slight decline in ASPs, largely led by a decline in the insurance sector. Although international unit growth was strong, the overall Hold rating reflects caution due to some mixed performance indicators.
In another report released today, J.P. Morgan also maintained a Hold rating on the stock with a $48.00 price target.
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Copart (CPRT) Company Description:
Corning Incorporated engages in manufacturing glass panels, liquid crystal display glass and funnels used inmobiles, televisions, notebook computers, and flat panel desktop monitors. It also provides optical fiber, cable, and photonic components for the telecommunications industry as well as develops, manufactures and supplies scientific laboratory products.
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