Research Alert: CFRA Maintains Hold Opinion On Shares Of Lkq Corporation
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We lower our 12-month target by $1 to $34, based on a 2027 P/E of 10.5x, a justified discount to LKQ's five-year mean forward P/E of 12.4x. We maintain our adjusted EPS estimates of $3.05 for 2026 and $3.25 for 2027. Following LKQ's Q1 earnings release, we are maintaining our estimates and lowering our price target slightly. However, we remain at a Hold on valuation, lack of catalysts, and concerns regarding margins. The stock appears fairly valued and LKQ's near-term outlook remains challenging as it navigates weak demand across its global operations. Last year represented LKQ's fourth straight year of EPS decline after the company's adjusted EPS peaked at $3.96 in 2021, and the midpoint of 2026 guidance implies Y/Y earnings improvement of only about 1%. We recommend waiting on the sidelines for signs of fundamental improvement and see better growth opportunities across the space.
