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Investing.com - Raymond (NSE:RYMD) James has reiterated its Strong Buy rating and CDN$285.00 price target on Boyd Group Services Inc (TSX:BYD) (OTC:BYDGF), despite weak industry data from competitor LKQ (NASDAQ:LKQ).
LKQ reported total repairable claims down 9.0% year-over-year in Q2 2025, representing a 100 basis point sequential improvement from the previous quarter’s 10.0% decline. North American Parts & Service same-store sales growth was -2.6% year-over-year, a 280 basis point improvement quarter-over-quarter.
Boyd Group previously posted -2.8% same-store sales growth in Q1 2025 against total industry claims down 10.0%, implying 720 basis points of outperformance. The company had indicated April activity was similar to Q1 performance, with no major improvement at the beginning of the quarter.
Raymond James analyst Steven Hansen noted that if Boyd experiences the same 100 basis point sequential improvement in claims as LKQ, results would be roughly in-line with Street expectations. The firm’s checks suggest major multi-shop operators (MSOs) like Boyd continue to take market share and have seen a more definitive recovery through Q2.
The analyst believes insurance carriers are likely steering incremental volumes to the most efficient MSOs first, potentially benefiting Boyd over smaller operators, and notes that historically Boyd’s same-store sales growth has outperformed LKQ’s North American Parts & Service performance by an average of 300 basis points.
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