LKQ Corporation (NASDAQ:LKQ) is one of the The Best Affordable Stocks to Buy According to Analysts. Wall Street maintains a positive view on LKQ Corporation (NASDAQ:LKQ) after the company announced the start of a potential sale process for its Specialties segment on December 4.
Following publication, on December 5, Barclays’ John Babcock reiterated a Hold rating on the stock with a $33 price target. Most recently, on December 10, Stephens’ Jeff Lick initiated LKQ Corporation (NASDAQ:LKQ) with a Buy rating and a $39 price target.
Management noted that the start of the possible sale of its Specialties segment is part of its multi-year effort to simplify its portfolio. Justin Jude, the company’s president and CEO, said they demonstrated commitment to their strategy by successfully selling the self-service segment. Furthermore, the CEO also noted that the decision comes after a careful review of the market environment, which suggests attractive divestment opportunities. Management noted that they have not yet set a definitive timeline or deadline for completing the sale.
Stephens’ Jeff Lick, who initiated a Buy rating on the stock, recently noted that the company is a great value stock with strong free cash flow performance. He added that despite the company’s low valuation, it enjoys a significant competitive advantage based on parts availability and pricing power. Lick also noted that the company’s strategy of focusing on its core business by selling complementary segments is expected to improve its financial performance.
LKQ Corporation (NASDAQ:LKQ) is a leading distributor of alternative and specialty parts for automobiles and other vehicles. The stock has had a challenging year and is down 19% year to date.
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Disclosure: None. This article was originally published in Internal jumpsuit.