Wall Street Maintains a Positive Opinion on LKQ Corporation (LKQ), Here's Why

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 initiation of a potential sale process for its Specialty segment on December 4.

After the release, on December 5, John Babcock from Barclays reiterated a Hold rating on the stock with a $33 price target. More recently, on December 10, Jeff Lick from Stephens initiated LKQ Corporation (NASDAQ:LKQ) with a Buy rating and a $39 price target.

Management noted that the commencement of the potential sale of its Specialty segment is part of its multi-year effort to simplify its portfolio. Justin Jude, President and Chief Executive Officer of the company, noted that they demonstrated commitment to their strategy by successfully selling the Self-Service segment. Moreover, the CEO also noted that the decision comes after a careful review of the market environment, which suggests attractive divestiture opportunities. Management noted that they have not yet set a definitive timetable or deadline for the completion of the sale.

Jeff Lick from Stephens, who initiated a Buy rating on the stock, recently noted the company to be a deep-value stock with a strong free cash flow yield. He added that despite the company’s low valuation, it enjoys a significant competitive edge based on the availability of parts and pricing power. Lick also noted that the company’s strategy to focus on its core business by selling non-core segments is expected to enhance 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 is originally published at Insider Monkey.