BUZZ - Roth MKM downgrades LKQ rating due to deterioration in European business and uncertainty over CEO transition

October 26 - ** Roth MKM downgraded auto parts distributor LKQ Corp (LKQ.O) from "Buy" to "Neutral," citing headwinds in the European market and uncertainty ahead of the CEO transition

** The broker said that while management changes could help reorganize the European business and accelerate disposals, limited visibility into related issues and the CEO handover process clouds the outlook

** The target price was lowered from $35 to $18, which still leaves limited upside potential from the stock's latest closing price

** LKQ withdrew its annual guidance last Friday, citing weak performance in its European business (link), and named Salvatore Abbate as CEO effective December

** "While it is too early to draw conclusions, we believe his track record in improving profitability and executing portfolio adjustments bodes well for LKQ's operational recovery and ongoing strategic review," Roth MKM said

** LKQ shares rose 0.7% in premarket trading

** Out of the 11 brokers covering the stock, seven rate it a "Buy" or higher, with the rest at "Hold"; the median target price is $25 — data compiled by LSEG

** As of the previous session's close, the stock was down about 42% year-to-date

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