While there may be a risk of further personnel churn, Morgan Stanley sees little impact upon near-term earnings from the unexpected retirement of Bapcor’s CEO, Darryl Abotomy.
However, reduced optionality for EPS upgrade catalysts, such as M&A and increased uncertainty around management leads the broker to downgrade its rating to Equal-weight from Overweight. The target price falls to $7.80 from $9.70. Industry view: In line.
Target price is $7.80.Current Price is $6.76. Difference: $1.04 – (brackets indicate current price is over target). If BAP meets the Morgan Stanley target it will return approximately 13% (excluding dividends, fees and charges – negative figures indicate an expected loss).