MorningStar lowers fair value estimate for Australia's Bapcor

Bapcor

05/03/2026 19:51

** Morningstar lowers Bapcor's BAP.AX fair value estimate to A$1.60 on "massively dilutive" equity raise, lower earnings forecasts

** Investment research firm trims its 2026 EBITDA forecast by 31% to A$155 million ($108.30 million)

** Says co no longer has an "economic moat" due to neglected trade business, but still recommends taking up rights on valuation grounds

** Bapcor announced A$200 million fully underwritten equity raising at A$0.60 per share on February 26, a 63% discount to MorningStar's valuation

** Eight of 10 analysts rate the stock "hold" and two "sell" with median price target of A$0.82, as per data compiled by LSEG

** Down 52.7% YTD

($1 = 1.4312 Australian dollars)

 (Reporting by Anjali Singh in Bengaluru)

 ((anjali.singh2@thomsonreuters.com;))