ORLANDO, Fla., April 1, 2008 (PRIME NEWSWIRE) -- RedChip Independent, a division of RedChip Companies Inc., has issued a fourth quarter 2007 research update for LKQ Corp. (Nasdaq:LKQX).
Ekta Bhatia, MBS, RedChip Research Analyst, reported:
"With the acquisition of Keystone, LKQX delivered an outstanding performance in 2007. LKQX consolidated its market as well as internal operations, realizing costs synergies and revenue enhancements. We believe this move will improve gross margins in the coming quarters."
"LKQX incurred substantial cash expenditures for the Keystone acquisition, but we believe the integration creates an immense boost that helps LKQX transition from using new OEM parts to aftermarket products," Bhatia continued.
"The strong influence of insurance companies on repair decisions and rising premium rates has created a highly competitive and price-sensitive market. Given the Company's dominant position in the industry and its acquisition-led business growth amidst a favorable market trend, we believe there is further scope for multiple expansions from its current levels. We continue to maintain our 'Buy' rating on LKQX," she concluded.
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