LKQ Has Outperform Rating on LKQ Corporation (LKQ)

LKQ Corporation (NASDAQ:LKQ) is one of the 15 Most Undervalued NASDAQ Stocks to Buy According to Wall Street Analyst.

Barrington, on February 24, increased its target price range on LKQ Corp. by ~12% to $45 to $50 (from a previous range of $40 to $45) and retained the firm’s Outperform call on the stock. The firm updated its sum-of-the-parts valuation analysis of LKQ following the release of the company’s Q4 2025 results.

LKQ released its Q4 2025 earnings report on February 19, which showed the company having a tough quarter amidst a “soft demand environment” in North America and Europe. This phenomenon was evident in the company’s profits, which declined across all metrics. Diluted EPS was down 50% YoY to $0.29, adjusted diluted EPS declined 24% YoY to $0.59 (missing street expectations of $0.65), and segment EBITDA fell 18% YoY to $321 million.

The decline in earnings can be explained by rising costs in North America (due to higher tariffs) and Europe (albeit to a lesser extent), which forced the company to raise its prices. The price increase led to a decline in volume in both the North America and Europe segments. The rising costs also led to a contraction in gross margins, as LKQ opted not to fully pass them on to consumers.

LKQ Corporation (NASDAQ:LKQ) is a specialty retailer that sells alternative and specialty parts for automobiles and other vehicles in North America, Europe, and Taiwan. The company is based in Antioch, Tennessee, and was founded in February 1998 by Donald F. Flynn.

While we acknowledge the potential of LKQ as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

Disclosure: None.