Maintenance spending cushions weak discretionary sales at Amotiv, Morningstar says

Bapcor

24/06/2026 20:52

** Morningstar says shares of Australia's Amotiv AOV.AX are "materially undervalued" amid the market's disproportionate focus on weak discretionary spending, which is cushioned by resilient maintenance spending
** Investment research firm notes the trend of a slowdown in spending on automotive-equipment firm's discretionary category products- even as maintenance spending holds up - is also seen across Bapcor and Supercheap Auto, and is cyclical
** Morningstar expects resilience in wear and repair categories - powertrain and undercar segment 
** Sees discretionary headwinds in Australia and New Zealand to continue throughout fiscal 2026
** Maintains its A$196 million ($134.97 million) FY26 EBITA forecast, which is in line with company outlook
** Also notes inflating freight and raw material costs, particularly Thai-sourced steel and petroleum-linked materials, saying pressure is somewhat mitigated by cost-outs
** AOV down 28% so far this year 
     
($1 = 1.4522 Australian dollars)

(Reporting by Shruti Agarwal in Bengaluru)
((Shruti.Agarwal@thomsonreuters.com;))