COPART (+) : Waiting for the parts to come together

Research evidence excerpt

COPART (+) : Waiting for the parts to come together

EQUITIES

GENERAL RETAIL

COPART OUTPERFORMPRICE* USD34.4  TARGET PRICE USD40 (UPSIDE 16%) TARGET -9%PRICE EPS07/27e2% EPS07/28e2%

Waiting for the parts to come together

Service revenue +2.1% vs. Cons. -1.7%, while EBIT of $464M beat Cons. $447M. EPS of $0.43 beat22 MAY 2026

Securities Research Report Cons $0.41 (albeit on the back of a ~$1.4bn repurchase). Shares are -0.5% aftermarket.

Production time: 11:11* (London time)

Research Analysts & Publishing Entities Key issue: Controlling what they can, but industry concerns an overhang

Chris Bottiglieri, CFA Copart voles remain negative given a combination of lower accident frequency, lower utilization of

BNP Paribas Securities Corp1 insurance, and the backdrop of minor share loss (after years of outsized share gains) while the

(+1) 646 342 2463 industry also deals with L-T concerns on autonomous driving. There are reasons to be positive withchristopher.bottiglieri@us.bnpparibas.com

valuation de-rating to an attractive FCF yield, compares starting to ease, ancillary revenue growth

Ian Davis picking up, insurance premiums are showing signs of decline, and Copart buyback is massively

BNP Paribas Securities Corp1

ramping up. However, mgt. neither guides nor speaks about near-term results, capex slowing (good(+1) 212 710 9784

ian.m.davis@us.bnpparibas.com for FCF/valuation support but signals growth uncertainty), and at the margin mgt.’s been a seller of

shares, which when combined with limited communication stokes near-term uncertainty.Hunter Lawson

Other takeaways from the Q3 call+1 934-233-7189

hunter.lawson@us.bnpparibas.com 1) CPRT gave an interesting statistic (survey from mid-2025) that one in every six policy holders has