CPRT Stock Upgraded, ACVA Downgraded By Barrington After $1.9B Deal – Analyst Sees Acquisition As A Long-Term Growth Catalyst

Barrington set a $40 target on Copart, saying ACV creates a new growth vector in dealer-to-dealer and commercial-vehicle digital auctions.

• BofA moved ACVA stock to ‘No Rating’ following the cash offer.
• Baird cut Copart’s target to $38 from $42 but maintains ‘Outperform’ after updating its model following quarterly results.
• Copart plans to launch a tender offer through a subsidiary for all outstanding ACVA shares at $10.50 apiece in cash.

Copart Inc. (CPRT) drew a bullish call from Barrington on Friday following its agreement to acquire ACV Auctions Inc. (ACVA), with analyst Gary Prestopino upgrading the stock to ‘Outperform’ from ‘Market Perform’ and setting a $40 price target, according to The Fly.

The analyst called the pending acquisition a positive long-term growth catalyst, saying it gives Copart a new avenue for expansion in dealer-to-dealer and commercial-vehicle digital auctions, per TheFly.

CPRT shares traded marginally in the green while ACVA stock traded around $10.42, approaching its 52-week high of $10.60, and was among the trending tickers on Stocktwits at the time of this writing.

Street Take on ACVA And CPRT

According to TheFly, Barrington downgraded ACVA to ‘Underperform’ from ‘Outperform’ following the deal. BofA moved ACVA to No Rating, saying the stock is no longer trading on fundamentals because of the pending transaction.

Separately, Baird lowered its Copart price target to $38 from $42 while keeping an ‘Outperform’ rating. The firm updated its model following quarterly results which fell short of expectations, according to TheFly. 

Terms Of The Acquisition

Copart plans to launch a tender offer through a subsidiary for all outstanding ACVA shares at $10.50 apiece in cash, a roughly 41% premium to ACV’s 30-day volume-weighted average price through Sept. 9, 2026.

Both boards unanimously approved the deal, which is expected to close by calendar year-end 2026. ACV will then operate as an independent Copart subsidiary led by its existing management team.

Deal Expected To Add To Copart Earnings From Fiscal 2028

Copart expects near-term cost and revenue synergies from the combination. The transaction is expected to be neutral to Copart’s earnings per share (EPS) in the first full year of ownership and accretive beginning in fiscal 2028. The company plans to fund the acquisition with cash on hand. 

Meanwhile, retail sentiment around ACVA stock turned “extremely bullish” on Stocktwits amid 'extremely high' message volume.

ACVA Stock has jumped over 26% so far this year, while CPRT Stock has slid nearly 18% during this period.

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