LKQ Snaps Up Green Bean Battery; Street Says Buy

LKQ Corporation (LKQ) has acquired the business and assets of Green Bean Battery. LKQ provides alternative and specialty parts to repair and accessorize automobiles and other vehicles.

The financial terms of the deal have not been disclosed.

Green Bean rebuilds hybrid batteries to restore lost battery capacity, thus creating a more reliable battery and extending its life span by many more years. The company reconditions batteries for hybrid vehicles manufactured by Toyota, Honda, General Motors, Lexus, and Nissan.

The buyout will help LKQ Corporation expand its portfolio and enhance its services offerings as it strives to meet changing trends in the automobile industry.

LKQ’s North America Wholesale Operations President Justin Jude said, “This acquisition reinforces our ongoing commitment to expand our parts and services offerings to meet the demands and opportunities that arise from technological changes in the automobile industry.”

He added, “Battery reconditioning represents a natural extension of our current powertrain remanufacturing operations. In addition, Green Bean’s entrepreneurial history, proprietary technology and sustainably-focused products fit well with LKQ’s mission and culture.” (See LKQ Corporation stock analysis on TipRanks)

On April 29, LKQ Corporation reported strong Q1 results. The company’s total revenues of $3.2 million surpassed the Street’s estimates of $2.96 million and grew 5.7% from the year-ago period. Also, earnings soared 64.9% to $0.94 per share, beating the consensus estimate of $0.63 per share.

Following the Q1 earnings, Barrington analyst Gary Prestopino increased the stock’s price target to $60.00 from $50.00, implying 20% upside potential. He said, “Based on solid execution and a reduced cost structure that should drive significant operating leverage in 2021, we are increasing our price target to $60 from a prior target of $50.”

The analyst reiterated a Buy rating.

Consensus among analysts is a Strong Buy based on 5 Buys versus 1 Hold. The average analyst price target stands at $57.80 and implies upside potential of 15.6% to current levels. Shares have gained almost 85% over the past year.

TipRanks data shows that financial blogger opinions are 100% Bullish on LKQ, compared to a sector average of 69%.

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