Stephens & Co. Initiates Coverage of LKQ Corporation (NASDAQ:LKQ) with Overweight Rating

LKQ Corporation (NASDAQ:LKQ) is among the 11 Most Oversold S&P 500 Stocks Heading into 2026. On December 10, Stephens & Co. analyst Jeff Lick initiated coverage of the stock with an Overweight rating and assigned a share price target of $39.

In a research note to investors, the analyst characterized the auto parts provider as a ‘deep-value stock’ with multiple avenues for share appreciation. According to TipRanks, Lick also praised the company’s free cash flow position and highlighted its unique status as the sole distributor of both aftermarket and salvage parts in the United States.

This follows Barclays analyst John Babcock’s reiteration on December 5 of an Equal-Weight rating on LKQ Corporation (NASDAQ:LKQ) with a price target of $33. This was a reaffirmation of his November 12 update in which the firm initiated coverage of the stock as part of a broader outlook for the auto retail sector.

As of the close of business on December 10, Wall Street analysts are bullish on the stock with a consensus Buy rating and a one-year average share price target of $41.19, representing an upside potential of 39%.

In other news, LKQ Corporation (NASDAQ:LKQ) announced on December 4 that it had begun the process for the potential divestiture of its Specialty segment as part of the company’s strategy to simplify its portfolio.

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.