HSBC Upgrades Copart (CPRT) to Buy & Sets $62 Target

The firm expressed confidence that recent volume softness, particularly from insurers, is only temporary. HSBC also pointed to margin improvement and active share buybacks as factors that could support long-term earnings growth.

The upgrade comes after Copart (CPRT) stock declined about 20% since its third-quarter fiscal 2025 results, even as the broader market moved higher. HSBC views the pullback as a buying opportunity in a high-quality company.