Evaluating LKQ: Insights From 6 Financial Analysts

Analysts' ratings for LKQ LKQ over the last quarter vary from bullish to bearish, as provided by 6 analysts.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $54.83, a high estimate of $60.00, and a low estimate of $47.00. This current average has decreased by 2.09% from the previous average price target of $56.00.

Deciphering Analyst Ratings: An In-Depth Analysis

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: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of LKQ compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for LKQ's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

For valuable insights into LKQ's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on LKQ analyst ratings.

Get to Know LKQ Better

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: Delving into Financials

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

Revenue Growth: Over the 3 months period, LKQ showcased positive performance, achieving a revenue growth rate of 7.63% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Net Margin: LKQ's net margin excels beyond industry benchmarks, reaching 4.99%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 3.01%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): LKQ's ROA stands out, surpassing industry averages. With an impressive ROA of 1.21%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: With a high debt-to-equity ratio of 0.93, LKQ faces challenges in effectively managing its debt levels, indicating potential financial strain.

The Basics of Analyst Ratings

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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