A Glimpse Into The Expert Outlook On LKQ Through 6 Analysts

In the latest quarter, 6 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.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $56.17, along with a high estimate of $60.00 and a low estimate of $48.00. Highlighting a 0.28% decrease, the current average has fallen from the previous average price target of $56.33.

Decoding Analyst Ratings: A Detailed Look

An in-depth analysis of recent analyst actions unveils how financial experts perceive LKQ. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

| Analyst | Analyst Firm | Action Taken | Rating |Current Price Target| Prior Price Target | |--------------------|--------------------|---------------|---------------|--------------------|--------------------| |Gary Prestopino |Barrington Research |Maintains |Outperform | $60.00|$60.00 | |Gary Prestopino |Barrington Research |Maintains |Outperform | $60.00|$60.00 | |Samik Chatterjee |JP Morgan |Raises |Overweight | $49.00|$48.00 | |Gary Prestopino |Barrington Research |Maintains |Outperform | $60.00|$60.00 | |Gary Prestopino |Barrington Research |Maintains |Outperform | $60.00|$60.00 | |Samik Chatterjee |JP Morgan |Lowers |Overweight | $48.00|$50.00 |

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to LKQ. This information provides 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 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.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of LKQ's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on LKQ analyst ratings.

Delving into LKQ's Background

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 1,500 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.

Unraveling the Financial Story of LKQ

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

Negative Revenue Trend: Examining LKQ's financials over 3M reveals challenges. As of 31 December, 2024, the company experienced a decline of approximately -4.11% in revenue growth, reflecting a decrease in 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 4.65%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): LKQ's ROE stands out, surpassing industry averages. With an impressive ROE of 2.55%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 1.03%, the company showcases effective utilization of assets.

Debt Management: LKQ's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.93.

What Are Analyst Ratings?

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

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.

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