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Research Alert: CFRA Maintains Hold Opinion On Shares Of Lkq Corporation
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Research Alert: CFRA Maintains Hold Opinion On Shares Of Lkq Corporation
Jul 25, 2025 10:48 PM

02:00 PM EDT, 07/24/2025 (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 lower our 12-month target by $10 to $30, based on a 2026 P/E of 8.6x, a justified discount to LKQ's five-year average forward P/E of 13.2x. We cut our adjusted EPS estimates to $3.20 from $3.50 for 2025 and to $3.50 from $3.80 for 2026. Following LKQ's big Q2 miss and significant cut to 2025 earnings guidance, we are lowering our price target and maintaining a Hold on the shares. In our view, management did a poor job managing the business in the face of various headwinds facing distributors. In North America, LKQ said did not see a recovery in repairable claims and tariff uncertainty continues, while in Europe, economic softness and geopolitical unrest are drivers of an uncertain environment. Over the past six quarters, LKQ's earnings have only beaten consensus twice. The $150 million reduction in full-year free cash flow expectations likely means that buybacks will not be as robust as they have been over the past few years. We recommend remaining on the sidelines pending an improvement in fundamentals.

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