LKQ downgraded to Neutral as Q3 outlook withdrawn and new CEO announced
Roth/MKM cut its rating on LKQ Corp. to Neutral and lowered the price target to $18.00 from $35.00 after the company issued a preliminary third‑quarter outlook that fell short of expectations. The pre‑announcement showed revenue expected to decline about 5% to $3.32 billion and adjusted EPS projected at $0.47‑$0.53, prompting LKQ to withdraw its fiscal‑2026 guidance. At the same time the board announced a CEO transition, with the new chief executive slated to start on December 15.
Why it matters
The downgrade and guidance withdrawal signal near‑term earnings pressure, which may depress the stock price further; investors will also watch the impact of the new CEO on the turnaround of the Europe segment.
Key facts
- 1Roth/MKM downgraded LKQ to Neutral and cut the price target to $18.00 from $35.00. investing.com
- 2Pre‑announcement revenue is expected to decline approximately 5% to $3.32 billion. investing.com
- 3Adjusted earnings per share is projected at $0.47‑$0.53. investing.com
- 4LKQ withdrew its fiscal‑2026 outlook, which previously called for adjusted EPS of $2.60‑$2.90 and free cash flow of $625‑$775 million. investing.com
- 5The company announced a CEO transition with the new chief executive to start on December 15. investing.com
- 6Impairments of $88 million goodwill and $23 million net‑asset charges total $111 million, contributing to a GAAP loss of $0.06‑$0.12 per share. finance.yahoo.com
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.