Should I Buy LKQ? LKQ 2026 Analysis

Should You Buy LKQ Corp (LKQ) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

32.620

1 Day change

0.15%

52 Week Range

44.500

Analysis Updated At

2026/01/26

LKQ Corp is not a strong buy for a beginner investor with a long-term focus at this time. While the stock has some positive aspects, such as its differentiated position in the market and a recent Overweight rating with a $39 price target, the financial performance shows declining net income, EPS, and gross margin. Additionally, technical indicators suggest no clear upward momentum, and the options data reflects a lack of significant bullish sentiment. Therefore, holding the stock and monitoring for better entry points or improved financial performance is recommended.

Technical Analysis

The MACD is positive but contracting, indicating a lack of strong momentum. RSI is neutral at 66.855, and moving averages are converging, suggesting no clear trend. The stock is trading near its first resistance level (R1: 34.091), with support at 33.449. Overall, technical indicators do not signal a strong buy opportunity.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

The low put-call ratios indicate a lack of significant bearish sentiment, but the overall options activity does not suggest strong bullish conviction either.

Technical Summary

Sell

Buy

Positive Catalysts

Stephens analyst initiated an Overweight rating with a $39 price target, citing LKQ's differentiated position and strong cash flow generation. The company is a global distributor with a recession-resistant model.

Neutral/Negative Catalysts

Financial performance in Q3 2025 shows a decline in net income (-5.76% YoY), EPS (-4.11% YoY), and gross margin (-1.63% YoY). Analysts from Barclays have a neutral view on the sector, and the stock has a 70% chance of declining in the next week based on candlestick pattern analysis.

Financial Performance

In Q3 2025, revenue increased by 1.33% YoY to $3.499 billion, but net income dropped by 5.76% YoY to $180 million. EPS fell by 4.11% YoY to 0.7, and gross margin decreased by 1.63% YoY to 35.61%. Overall, financial performance shows modest revenue growth but declining profitability metrics.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Stephens initiated an Overweight rating with a $39 price target, citing LKQ's deep-value stock potential and strong cash flow. Barclays rated it Equal Weight with a $33 price target, citing mixed sector fundamentals. Roth Capital maintained a Buy rating but lowered the price target to $43 from $46 due to headwinds in North America and Europe. Analysts are cautiously optimistic but highlight challenges in the market.

6 Analyst Rating

Wall Street analysts forecast LKQ stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LKQ is 41.25 USD with a low forecast of 33 USD and a high forecast of 50 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

5 Buy

1 Hold

0 Sell

Strong Buy

Current: 32.570

Low

Averages

41.25

High

Current: 32.570

Low

Averages

41.25

High

Stephens

Jeff Lick

Overweight

initiated

$39

AI Analysis

2025-12-09

Reason

Stephens

Jeff Lick

Price Target

$39

AI Analysis

2025-12-09

initiated

Overweight

Reason

Stephens analyst Jeff Lick initiated coverage of LKQ Corp. with an Overweight rating and $39 price target. The firm views LKQ as a "deep-value stock" with multiple paths to share upside. The company has a "differentiated position" in the U.S. as the only distributor of both aftermarket and salvage parts, the analyst tells investors in a research note. Stephens says the company is global distributor of aftermarket auto parts with a "margin of safety" in its free cash flow generation.

Barclays

Equal Weight

initiated

$33

2025-11-11

Reason

Barclays

Price Target

$33

2025-11-11

initiated

Equal Weight

Reason

Barclays initiated coverage of LKQ Corp. with an Equal Weight rating and $33 price target. The firm rolled out coverage on the auto retail sector with a neutral view. Sector fundamentals are mixed, but the dealers offer "resiliency and strong shareholder returns," the analyst tells investors in a research note. Barclays is constructive on the growth outlook for the digital auction marketplaces as it sees the companies gaining shared from physical auctions.

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LKQ Should I Buy

LKQ Should I Buy

Should You Buy LKQ Corp (LKQ) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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