Brokerages trim valuation for Australia's Bapcor as rebound hopes fade

Bapcor

09/12/2025 19:24

** Morningstar and Jefferies cut their valuations and earnings views for Bapcor BAP.AX as troubles in the auto parts retailer's key trade division continue to weigh on business

** Co warns FY26 statutory NPAT at A$31 million - A$36 million ($20.58 million - $23.90 million) vs earlier guidance A$40 million - A$50 million

** Morningstar cuts fair value estimate by 6% to A$4.7, says co's turnaround is proving longer and more painful than the market anticipated

** Investment research firm also cuts net profit forecast by 24% and 18% for fiscal 2026 and 2027, respectively

** Jefferies cuts price target to A$3.4 from A$2.5; also lowers EPS estimates by 17%, 12% and 12% for fiscal 2026, 2027 and 2028, respectively

** Morningstar, however, flags management is focusing on the right things: cutting costs, simplifying a business that has become bloated with non-core acquisitions, and returning focus to the core trade segment

** Stock down 60.8% so far this year, as of last close

($1 = 1.5063 Australian dollars)

(Reporting by Nikita Maria Jino in Bengaluru)

((Nikita.Jino@thomsonreuters.com))