Goldman Sachs Initiates Copart at Buy (CPRT)

Goldman Sachs is out with its report today on Copart (NASDAQ: CPRT), initiating CPRT at Buy.

In a note to clients, Goldman Sachs writes, "We initiate coverage with a Buy rating, as we believe accelerating revenues associated with a key business win (Allstate) and cyclical recovery are likely to converge with decelerating investments, fueling annual EBIT growth averaging 9% over our forecast window. Strong cash flow characteristics should allow large buybacks, as evidenced by the recent tender for 15% of the shares, providing stronger EPS growth, +18% annually FY10 to FY13."

Goldman Sachs has a $48 PT on CPRT.

Shares of CPRT closed Thursday at $40.51.