LKQ Corporation (NASDAQ:LKQ) is one of the deep value stocks to buy according to analysts. On July 25, Roth Capital’s Scott Stember cut his price target on LKQ Corp. to $46 from $56 but kept a Buy rating on the stock. The revision followed a weaker-than-expected second quarter, with EPS falling short and management lowering its 2025 guidance.
A line of mechanics diagnosing a recreation vehicle engine at a repair shop.
The analyst emphasized on the ongoing headwinds in both the U.S. and Europe. In North America, he says that demand in the collision repair market is recovering at a slower pace than anticipated. On the other side, in Europe, operational missteps have weighed on results. Despite these challenges, he believes LKQ’s long-term fundamentals remain intact and that the stock offers value for patient investors.
From a financial standpoint, LKQ reported Q2 2025 revenue of $3.6 billion, a 2% year-over-year decrease, with organic revenue decline of 3.4% in its parts and services segment. Adjusted EPS was $0.87, reflecting an 11% decline year over year. Free cash flow generation remained good at $243 million for the quarter, keeping the company on track to achieve its revised full-year guidance of $600-$750 million (down from $750-$900 million earlier).
LKQ Corporation is a leading provider of alternative and specialty parts to repair and accessorize automobiles and other vehicles.
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This article is originally published at Insider Monkey.
