LKQ’s Results Came in Slightly Below Our Estimates, but We Still Expect Solid Organic Growth in 2023

LKQ’s 2022 results came in slightly below our expectations, but we still chose to raise our fair value estimate to $46.50 per share from $45.50 previously. The increase is largely attributable to our more optimistic sales forecast starting in 2024. LKQ is a strong vehicle parts company, and we expect multiple secular tailwinds to help grow its revenue base throughout our forecast. In our view, demand for repairs will remain solid in the near term, given the growing and aging number of U.S. vehicles in operation.