Analysts cut earnings view on Australia's Bapcor on gloomy trading update

Bapcor

03/05/2024 24:53

(Adds comments from Macquarie note)
    ** Brokerage Citi slashes earnings outlook on automotive
retailer Bapcor  BAP.AX  for FY24 to FY26 by 21% to 8%,
respectively, owing to weaker-than-expected trading update
    ** Cuts target price to A$4.70 from A$6.34
    ** Bapcor said on Thursday its second half FY24 pro-forma
NPAT results will be below first half FY24
    ** Co said it sees pro-forma NPAT for FY24 to be between
A$93 million ($60.70 million) and A$97 million
    ** Brokerage Macquarie also cuts EPS forecast between 17%
and 27% for FY24 to FY26 period
        ** Macquarie, however, says BAP is a "quality business
with a strong competitive position", and its discounted
valuation makes it a takeover target
  
        ** Maintains "Outperform" rating on stock 
  
    ** Stock down 20.6% this year as of last close

 (Reporting by Poonam Behura in Bengaluru)
 ((Poonam.Behura@thomsonreuters.com;))