Barrington Research Upgrades LKQ Corp (LKQX) to Outperform, Sets Price Target at $36
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Price: $35.17 +3.26%
Rating Summary:
2 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 8
Rating Summary:
2 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 8
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Barrington Research upgraded shares of LKQ Corp (NASDAQ: LKQX) to an Outperform rating from its previous rating of Market Perform and is initiating its price target on the shares at $36.
The company recently announced that it closed on the Euro Car Parts acquisition. The firm believes that LKQX acquired the parts company was due to its U.K. distribution network, which is currently the largest in the country. LKQ Corp. also released plans to increase Euro Car Part branches by 10-12 per year.
LKQ purchased Euro Car Parts for roughly $347 million and increased its credit facility from $1 billion to $1.4 billion to do so. In 2010, Euro Car Parts reported $420 million in sales and has experienced a 30 percent organic revenue increase over the past five years.
Management released guidance that shows that the acquisition will be accretive to diluted EPS by $0.15-0.18 in 2012. To reflect the recent acquisition, Barrington is increasing its 2012 EPS estimate from $1.64 to $1.82.
An analyst at Barrington comments, "We view the acquisition of ECP as being transformational for LKQ as it gives the company an initial foray into a new international market with an eventual beachhead to expand operations onto the continent of Europe."
For more ratings news on LKQ Corp click here and for the rating history of LKQ Corp click here.
Shares of LKQ Corp closed at $27.01 yesterday.
The company recently announced that it closed on the Euro Car Parts acquisition. The firm believes that LKQX acquired the parts company was due to its U.K. distribution network, which is currently the largest in the country. LKQ Corp. also released plans to increase Euro Car Part branches by 10-12 per year.
LKQ purchased Euro Car Parts for roughly $347 million and increased its credit facility from $1 billion to $1.4 billion to do so. In 2010, Euro Car Parts reported $420 million in sales and has experienced a 30 percent organic revenue increase over the past five years.
Management released guidance that shows that the acquisition will be accretive to diluted EPS by $0.15-0.18 in 2012. To reflect the recent acquisition, Barrington is increasing its 2012 EPS estimate from $1.64 to $1.82.
An analyst at Barrington comments, "We view the acquisition of ECP as being transformational for LKQ as it gives the company an initial foray into a new international market with an eventual beachhead to expand operations onto the continent of Europe."
For more ratings news on LKQ Corp click here and for the rating history of LKQ Corp click here.
Shares of LKQ Corp closed at $27.01 yesterday.
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