Sterne Agee CRT Reiterates Buy on LKQ Corporation (LKQ) After Hosting Investor Meetings

Sterne Agee CRT maintained a Buy rating and $40.00 price target on LKQ Corporation (NASDAQ: LKQ) after hosting investor meetings with management. Management noted that 5-7% NA organic growth is likely sustainable over the next several years due to a favorable macro collision backdrop.

Analyst Ali Faghri commented, "We hosted investor meetings in New York with LKQ CEO Rob Wagman, CFO Nick Zarcone, and Director of IR Joe Boutross. Discussions largely focused on: 1) North America organic growth trends; 2) the impact of lower used vehicle prices; 3) how LKQ would fare in a recession; 4) the European collision parts market; 5) State Farm aftermarket parts adoption; and 6) the impact of collision avoidance technology. We came away from meetings with increased confidence regarding current business trends and the long-term growth potential, supported by a favorable macro backdrop in NA and significant growth opportunities in Europe. At 15x 2017 EPS, we believe shares are undervalued and numbers have room to move higher. Stay Long."

For an analyst ratings summary and ratings history on LKQ Corp. click here. For more ratings news on LKQ Corp. click here.

Shares of LKQ Corp. closed at $32.26 yesterday.

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