Expert Ratings For LKQ

In the latest quarter, 5 analysts provided ratings for LKQ LKQ, showcasing a mix of bullish and bearish perspectives.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Analysts have set 12-month price targets for LKQ, revealing an average target of $58.0, a high estimate of $65.00, and a low estimate of $50.00. A 1.02% drop is evident in the current average compared to the previous average price target of $58.60.

Investigating Analyst Ratings: An Elaborate Study

A comprehensive examination of how financial experts perceive LKQ is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to LKQ. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of LKQ compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for LKQ's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Capture valuable insights into LKQ's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on LKQ analyst ratings.

Unveiling the Story Behind LKQ

Since forming in 1998 to consolidate the auto salvage business in the United States, LKQ has developed into a leading distributor of aftermarket and recycled auto parts with around 1,700 facilities across North America and Europe. The company primarily sells into the professional, or do-it-for-me, channel and offers an assortment of collision and mechanical parts to both body shops and mechanical repair shops. It also continues to operate more than 70 LKQ pick-your-part junkyards. Separate from the self-service business, LKQ typically purchases around 250,000 salvage vehicles annually that are used to extract vehicle parts for resale.

LKQ's Financial Performance

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

Revenue Growth: LKQ's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 7.63%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 4.99%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): LKQ's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.01% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): LKQ's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 1.21%, the company showcases efficient use of assets and strong financial health.

Debt Management: LKQ's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.93, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

What Are Analyst Ratings?

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

This article was generated by Benzinga's automated content engine and reviewed by an editor.