Argus starts Copart at Buy, sees continued solid revenue

Argus initiated coverage of Copart with a Buy rating and $53 price target. The company’s platform enables members to find, bid on, and purchase used cars, trucks, motorcycles, and boats, and the firm believes that Copart will generate continued solid revenue and earnings from its online auctions given higher selling prices and limited vehicle supply at dealerships, the analyst tells investors in a research note. Argus is also positive on the company’s experienced management team and a strong balance sheet, along with its low debt/cap ratio and substantial liquidity.