While making an investor presentation yesterday, Bapcor reaffirmed guidance for pro forma earnings of at least FY21 levels. In the absence of lockdowns and with less supply chain pressures, Morgan Stanley noted an acceleration in 3Q revenue.

The analyst see a partial offset from efficiency gains versus the risk to the consensus estimate for 6% sales growth in FY23 and FY24.

Equal-weight and $7.20 target retained. Industry view: In-Line.

Sector: Retailing.

Target price is $7.20.Current Price is $6.40. Difference: $0.80 - (brackets indicate current price is over target). If BAP meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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