Initiating
Coverage of Copart, Inc. with a
1-BUY (Strong Buy) Rating
Chicago,
Illinois - January 3, 2001: Gary Prestopino, CFA, a research analyst
with Barrington Research Associates, initiated coverage of Copart, Inc.
(CPRT:NASDAQ) today with a strong buy rating and a 12-month price target
of $28.
Copart provides technology-driven services and customized programs for
processing and selling salvage vehicles through live and web-based auctions.
The company has at present 77 locations in 36 states. They have established
a strong growth pattern supported by technology initiatives, re-engineered
business processes, the development of greenfield sites and acquisitions
of existing facilities.
Copart has long been an innovator in Internet services for the auction
of salvage vehicles. Their services include: on-line bidding; Buyer
Profile, which targets specific buyers of salvage vehicles; Copartfinder.com,
a search engine used to locate used car parts; and a new partnership
with Keystone Automotive Industries (KEYS:NASDAQ) that enables buyers
of salvage vehicles to purchase aftermarket replacement parts online.
These Internet initiatives are driving market share gains and growth.
Copart's insurance client retention averages 95% and their recurring
revenue generation averages close to 90%. The auto salvage industry
is recession resistant and provides steady growth influenced by the
rate of automobile accidents. Additionally, due to increased cost of
repair caused in large part by litigation over the use of aftermarket
auto parts, insurance companies are declaring a larger percentage of
damaged vehicles at a total loss.
Management is shareholder oriented as directors and executive officers
beneficially own 32% of Copart's outstanding shares. We believe Copart
is positioned to deliver consistent earnings growth of 28% compounded
annually over the next two fiscal years. We are initiating coverage
with a 1-BUY (strong buy) with a $28 twelve to eighteen month price
target.
Barrington Research Associates, Inc. is a Chicago-based, privately held
securities brokerage firm. Founded in 1983, Barrington Research provides
economic, market, and equity research, as well as sales and trading,
asset management, and investment banking services.
