Bapcor Is a Company in Turnaround

We expect Bapcor's strong earnings growth to return as the competitively advantaged trade business capitalizes on favorable industry dynamics. We forecast Bapcor to continue to capture share in the fragmented trade market as it rolls out stores. We forecast a double-digit EPS compound annual growth rate over the next five years as the business recovers from trough earnings in fiscal 2025, improving same-store sales growth of around 2%-3% per year, and growing private-label penetration.