LKQ Corporation (NASDAQ: LKQ) is one of the Best Affordable Stocks to Buy According to Analysts. Wall Street maintains a positive opinion on LKQ Corporation (NASDAQ: LKQ) after the company announced the start of a potential sales process for its specialty segment on December 4.
Following the release, on December 5, John Babcock of Barclays reiterated a Hold rating on the stock with a price target of $33. Most recently, on December 10, Stephens’ Jeff Lick listed LKQ Corporation (NASDAQ:LKQ) with a Buy rating and a $39 price target.
Management emphasized that the start of the potential sale of its Specialty segment is part of its multi-year efforts to simplify its portfolio. Justin Jude, President and CEO of the company, noted that they have demonstrated their 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 said it has not yet set a definitive timetable or deadline for completion of the sale.
Jeff Lick of Stephens, who issued a buy rating on the stock, recently noted that the company is a great value stock with a strong free cash flow yield. 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 non-core 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 rough year and is down 19% year to date.
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Disclosure: None. This article was originally published on Initiated Monkey.
