Deutsche Bank Ups PT To $27.50 On LKQX

Deutsche Bank is raising its price target on LKQ Corp. LKQX from $20 to $27.50 based upon a strong quarter and fair valuation. In the report, Deutsche Bank writes, “Results included 10% organic growth in both key divisions (wholesale and aftermarket), the first time this has occurred since the acq of Keystone in 2007, and a rebound in gross margin to 43.7% (100bp seq rise). Guidance was increased to $1.35 - $1.44 (ex the $0.02 charge) from $1.31 - $1.39, implying a maintenance of the outlook for the balance of the year. We raise FY2011 / 2012 est's to $1.43 / $1.63 from $1.35 / $1.52 based on higher gross margin and acq rev. We are raising target to $27.50 from $20; maintain Hold rating on valuation.” Deutsche Bank maintains its Hold rating on LKQX. LKQX closed at $25.20 yesterday.