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

Core Insights - Copart Inc. (NASDAQ: CPRT) is recognized as a strong stock within the QQQ index, despite a recent price target reduction by Baird from $55 to $52 while maintaining an Outperform rating due to ongoing insurance industry challenges [1][3]. Financial Performance - For Q3 2025, Copart reported total revenue of $1.16 billion, reflecting a year-over-year increase of just under 1%, but a 2.9% growth when excluding non-recurrent catastrophic events from the previous year [2]. - Gross profit for the quarter rose by 4.9% to $537 million, with gross margin improving by 1.84% to 46.5% [2]. - Net income increased by 11.5% to $404 million, and earnings per share (EPS) grew by 10.8% to $0.41 [2]. Market Dynamics - Profitability in the reported quarter was primarily driven by higher average selling prices (ASPs) and increased auction liquidity [3]. - Global insurance ASPs experienced a growth of 6.8%, with US insurance ASPs reaching an all-time high, increasing by 8.4% year-over-year [3]. - This price strength contributed to a 12.3% increase in gross profit per fee unit and a higher US gross margin of 48.7% [3]. Company Overview - Copart Inc. specializes in online auctions and vehicle remarketing services across various countries, including the US, UK, Germany, Brazil, Canada, UAE, Spain, Finland, Oman, Republic of Ireland, and Bahrain [4].