No. of Recommendations: 5
LKQ at $46.15.
It has started to behave better than the broad market rather than worse, so on a relative basis versus the average large US firm the price seems (?) to have bottomed out about a month ago. That's sometimes the moment to look at falling cutlery: after the first bounce off the floor.
But the valuation still seems quite reasonable, if you believe the basic business has a future. For whatever it's worth, current price is about 10.5 times consensus earnings for next year. Figures over 20 were the norm in the years before the pandemic.
Jim
No position
