Street Calls of the Week
LKQ Corporation’s stock has reached a new 52-week low, dipping to 28.92 USD. The automotive parts distributor, with a market capitalization of $7.45 billion, maintains strong fundamentals with a P/E ratio of 10.6x and an attractive dividend yield of 4.09%. According to InvestingPro analysis, the stock appears undervalued at current levels. This marks a significant downturn for the company, as its stock has experienced a 25.72% decline over the past year. The automotive parts distributor has faced various market challenges, contributing to its decreasing stock value. Despite these headwinds, the company maintains strong liquidity with a current ratio of 1.81, and analysts have set price targets ranging from $40 to $46. For deeper insights and additional analysis, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers what really matters about LKQ’s financial health and future prospects.
In other recent news, LKQ Corporation reported its second-quarter 2025 earnings with an EPS of $0.87, missing the forecasted $0.92, leading to a negative surprise of 5.43%. However, the company slightly exceeded revenue expectations, reporting $3.64 billion against a projected $3.62 billion. Additionally, LKQ announced the sale of its Self Service segment to Pacific Avenue Capital Partners for $410 million, a transaction expected to close in the fourth quarter of 2025. Raymond James maintained its Outperform rating on LKQ stock following this announcement, noting the sale price represents 7.6 times the segment’s trailing twelve-month EBITDA.
In a separate development, John Mendel has been elected as Chairman of the Board of Directors at LKQ, succeeding Guhan Subramanian. Subramanian will remain on the board until the end of the year to facilitate a smooth transition. Meanwhile, Raymond James lowered its price target for LKQ to $40.00 from $50.00, citing weak market conditions and operational challenges in Europe as factors influencing this decision. Despite these challenges, Raymond James continues to hold an Outperform rating on the stock.
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