Citi downgrades Australia's Bapcor to 'sell' as outlook remains cloudy

Bapcor

14/05/2026 20:15

** Citi downgrades rating for Bapcor BAP.AX to "sell" and slashes target price by 47% to A$0.40 a day after trimming annual earnings view

** Brokerage also cuts EPS estimate by 45%, 83% and 44% for fiscals 2026, 2027 and 2028, respectively

** Auto parts retailer on Thursday said co expects FY26 underlying EBITDA (post AASB16) of A$144 million-A$150 million ($104.01 million-$108.35 million) vs earlier forecast of A$150 million-A$160 million

** Also attributed outlook cut to material deterioration in trading conditions since late March with the start of the Middle East conflict and increase in interest rates

** Citi says business has experienced increases in freight, fuel and supplier costs from April, and these are expected to continue in the near term

** Brokerage adds while Bapcor's recent equity raising improved its balance sheet, co is operating with banking covenants temporarily relaxed over CY26

($1 = 1.3845 Australian dollars)

 (Reporting by Nikita Maria Jino in Bengaluru)

 ((Nikita.Jino@thomsonreuters.com;))