Analyst Gary Prestopino of Barrington maintained a Buy rating on LKQ (LKQ – Research Report), retaining the price target of $60.00.
Gary Prestopino has given his Buy rating due to a combination of factors that highlight LKQ Corporation’s strategic resilience and operational improvements. Despite a decline in revenue and adjusted EPS for Q1/25, the company managed to exceed bottom-line expectations by implementing cost-saving measures and exiting underperforming businesses. This strategic maneuvering allowed LKQ to counterbalance revenue challenges across its segments.
In North America, LKQ continued to gain market share even amidst a decline in repairable claims, showcasing its competitive edge. The company also improved its segment EBITDA margin in Europe and achieved a notable increase in gross margins. Additionally, LKQ’s commitment to shareholder returns was evident through significant share repurchases and dividends. These factors, combined with effective SKU rationalization and private label penetration, underpin Prestopino’s confidence in LKQ’s future performance.
In another report released today, Roth MKM also reiterated a Buy rating on the stock with a $56.00 price target.