09:45 AM EDT, 04/23/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We keep our 12-month price target of $50, based on a 2025 P/E of 11.4x, a justified discount to its five-year average forward P/E of 13.7x. We lower our 2024 adjusted EPS estimate by $0.15 to $3.95 but maintain 2025's at $4.40. LKQ posted Q1 adjusted EPS of $0.82 vs. $1.04 (-21%), well short of the $0.95 consensus. The miss was driven by weaker-than-expected sales and margins, as LKQ's revenue rose 11% to $3.70B ($60M below consensus) and gross margin contracted 180 bps to 39.2% (100 bps below consensus). Management cited softer-than-expected North American wholesale demand for the miss, as repairable claims were down, which LKQ blamed on warmer-than-normal winter weather. Despite the Q1 shortfall, LKQ maintained 2024 adjusted EPS guidance of $3.90-$4.20 (consensus of $4.08), but now expects lower organic revenue growth of 2.5%-4.5% vs. 3.5%-5.5% previously. We keep a Hold opinion, as we believe the story lacks a catalyst and we see more compelling growth opportunities across our coverage universe.