Copart (CPRT) shares tumbled 5.47% in pre-market trading on Friday following the company's disappointing third-quarter earnings report and a subsequent price target cut by JPMorgan. The online vehicle auction company's financial results fell short of Wall Street expectations, raising concerns about its growth trajectory and competitive position.

Copart reported total revenue of $1.21 billion for the third quarter, missing analyst estimates of $1.23 billion. The company's net income came in at $406.6 million, slightly below the expected $407.34 million, according to data compiled by LSEG. The underperformance was attributed to weak vehicle sales and higher expenses, which offset growth in the service segment.

In response to the earnings miss, JPMorgan lowered its price target on Copart from $60 to $55, representing a 9.3% downside from the stock's previous closing price. The investment bank maintained its 'neutral' rating on the stock. JPMorgan analysts expressed concerns about Copart's insurance volume growth trajectory and increased competitive pressure from the resurgence of rival Insurance Auto Auctions (IAA).

The pre-market plunge reflects investor disappointment with Copart's performance and the potential challenges ahead for the company. As of the last close, Copart's stock had risen 5.7% year-to-date, but this latest setback may prompt investors to reassess their outlook on the company's near-term prospects.