Bapcor's Narrow Economic Moat Is Underpinned by Its Resilient Trade Business
We expect Bapcor's strong earnings growth to continue as the competitively advantaged trade business capitalizes on favorable industry dynamics. We forecast Bapcor continuing to capture market share in the fragmented trade business as it rolls out stores. We also project same-store sales growth of around 3% per year and growing private-label penetration to more than offset near-term headwinds, leading to a five-year EPS CAGR of 13%.