JPMorgan lowered the firm’s price target on LKQ Corp. (LKQ) to $48 from $50 and keeps an Overweight rating on the shares. The firm also placed the shares on “Negative Catalyst Watch” ahead of the Q4 report. JPMorgan updated the company’s model to reflect the latest trends pertaining to automotive collision repairs in the U.S. and the broader European automotive aftermarket, including currency headwinds driven by recent U.S. dollar strength and related margin implications. The analyst expects LKQ’s Q4 report on February 20 and the accompanying 2025 outlook to be a “kitchen sink” event for the shares, saying sustained unfavorable industry trends are likely to prompt management to guide conservatively for the full year ahead and potentially drive meaningful downside revisions to consensus earnings estimates. However, the firm views the company’s ongoing headwinds “as largely exogenous in nature.”

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