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Bullish Case: LKQ exhibits strong potential for rebound, with recent dips making the valuations attractive. The organic growth in its European markets and robust free cash flow are vectors for recovery and optimism.


Bearish Case: Recent contraction in the Wholesale – North America segment and reduced repairable claims indicate persistent operational headwinds. Additionally, a lukewarm Q1 earnings report exacerbates concerns about market performance.


Potential Outcomes:

1) Consolidation success bolsters efficiency: 40%.

2) European market expansion offsets North American woes: 35%.

3) Continued underperformance in North America drags overall profit: 25%.


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April 25, 2024


LKQ Forecast

LKQ        LKQ
Price Forecast: NEUTRAL    Price Action: MEAN REVERTING (?)











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