Bapcor has underperformed recently, given the concerns around shut-downs and the associated impact on the balance sheet.
Credit Suisse observes the company has multiple options on its balance sheet which limits gearing to 2.6x FY20 operating earnings (EBITDA).
The broker retains an Outperform rating and reduces the target to $5.85 from $7.50.
Sector: Retailing.
Target price is $5.85.Current Price is $4.22. Difference: $1.63 – (brackets indicate current price is over target). If BAP meets the Credit Suisse target it will return approximately 28% (excluding dividends, fees and charges – negative figures indicate an expected loss).
