Bapcor Ltd

BAP: XASX (AUS)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	A$6.10	Vfpnfr	Rxfgxxgl

Bapcor: Auto Spare Parts Remain Resilient

Angus Hewitt

May 4, 2023

We maintain our AUD 8.00 fair value estimate for shares in narrow-moat Bapcor following a market update. Bapcor provided limited qualitative guidance, principally pointing to an expectation for half-on-half improvement in trading. We maintain our fiscal 2023 EBITDA forecast of AUD 308 million, implying an 11% half-on-half improvement from AUD 146 million banked in the first half, underpinned by strength in the core trade and wholesale businesses. At current prices, shares in Bapcor screen undervalued.

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