Copart (NASDAQ: CPRT) Delivers Strong Q3, Jefferies Adjusts Price Target

• Copart (NASDAQ: CPRT)'s third-quarter fiscal 2026 results showcased robust financial performance, with earnings per share and revenue growth exceeding analyst expectations.
• Despite a decline in unit volumes, the company achieved an improved gross margin, driven by higher average selling prices and a favorable revenue mix in its online vehicle auctions.
• Investment firm Jefferies updated its price target for Copart to $45, indicating a significant potential upside of approximately 33.18% from the stock's trading price at the time of the announcement.

On the NASDAQ exchange, Copart (NASDAQ: CPRT) operates as a global provider of online vehicle auctions. The company specializes in selling salvage and clean title vehicles for a variety of sellers, including insurance companies, banks, and car dealerships.

On May 22, 2026, the investment firm Jefferies lowered its price target for Copart to $45 from $47. This update occurred as the company announced strong third-quarter fiscal 2026 results. As highlighted by Zacks, earnings per share (EPS) rose 2.4% to $0.43, beating estimates of $0.41.

The company's revenues also climbed 2.1% to $1.24 billion, exceeding the $1.21 billion consensus estimate. This performance was driven by a 4.6% increase in average selling prices and a better revenue mix. This mix shift helped offset a 2.4% decline in overall unit volumes and softer insurance activity.

Despite the volume drop, the company's gross margin improved to 46.3%. Gross margin is the profit a company makes from its revenue after subtracting the direct costs of producing its goods or services. As noted by MarketBeat, CEO Jeff Liaw believes rising repair costs will increase total loss frequency, supporting long-term growth.

At the time of the price target announcement, Copart traded at $33.79 per share. The updated $45 target from Jefferies represents a potential upside of approximately 33.18% from that price. The company's international revenues also showed strong growth, increasing by 14.1%.