Deep Dive Into LKQ Stock: Analyst Perspectives (4 Ratings)

Analysts' ratings for LKQ LKQ over the last quarter vary from bullish to bearish, as provided by 4 analysts.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts have recently evaluated LKQ and provided 12-month price targets. The average target is $54.25, accompanied by a high estimate of $60.00 and a low estimate of $48.00. Observing a downward trend, the current average is 0.46% lower than the prior average price target of $54.50.

Deciphering Analyst Ratings: An In-Depth Analysis

A clear picture of LKQ's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to LKQ. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of LKQ compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of LKQ's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on LKQ analyst ratings.

All You Need to Know About 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 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.

Financial Milestones: LKQ's Journey

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

Revenue Growth: LKQ's remarkable performance in 3 months is evident. As of 30 September, 2024, the company achieved an impressive revenue growth rate of 0.45%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Discretionary sector.

Net Margin: LKQ's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 5.33%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 3.09%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): LKQ's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.25% ROA, the company effectively utilizes its assets for optimal returns.

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.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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