LKQ Corp

LKQ: XNAS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$98.30	Gmxhtx	Vkkttxfc

LKQ’s Second-Quarter Results Show Resilience Despite Numerous Headwinds

Dawit Woldemariam

Jul 28, 2022

LKQ reported mixed second-quarter results to close out the first half of 2022. Even so, we raised our fair value estimate to $47 from $46 previously, largely due to our confidence in auto repair demand. While supply headwinds have continued to pressure the auto industry, LKQ has remained rather resilient. The lack of new vehicle builds over the past year has pushed vehicle owners to hang on to their vehicles a lot longer than expected, which in turn has driven greater demand for auto repairs.

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