08:25 AM EDT, 05/17/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We maintain a 12-month target of $65, based on 38.2x our FY 25 (Jul.) EPS estimate, a justified premium to CPRT's 5-year mean forward P/E of 33.3x. We maintain our adjusted EPS estimates of $1.45 for FY 24 and $1.70 for FY 25. CPRT posts Apr-Q adjusted EPS of $0.39 vs. $0.36 (+8%), in line with consensus. Revenue rose 10% to $1.13B ($20M ahead of consensus), but gross margin contracted 70 bps to 46.6% (90 bps shy of consensus). While we thought CPRT's margin performance was a bit disappointing, we continue to like the stock. We reiterate our Buy opinion, liking CPRT's largely recession-resistant business model, duopoly-like market position, favorable tailwinds from the aging U.S. vehicle fleet, strong free cash flow (we estimate $1.0B in FY 24), and growing net cash balance ($3.0B at quarter-end). In our opinion, CPRT faces a high-class problem: whether to return cash to shareholders or invest in growth. We think the potential for some sort of value-creating action is high with its current cash stockpile.