The Bapcor Ltd (ASX: BAP) share price rose 5% today after speculation that it's a takeover target.
Bapcor operates a number of different businesses including Autobarn, Autopro, Burson Auto Parts, Truckline, WANO, Midas, ABS, Shock Shop, Battery Town and BNT (New Zealand), as well as many more. It also has a presence in Asia with Burson in Thailand and investment in Tye Soon.
According to reporting by The Australian, the US-listed auto parts business Autozone is sniffing around the ASX share. This American business is the largest retailer of after-market auto parts and accessories in the US.
Image source: Getty Images
The speculation about Bapcor shares
The Australian said that a potential suitor is "running the ruler" over Bapcor, with AutoZone executives reportedly in the country and looking at opportunities.
The newspaper also reported that Macquarie Group Ltd (ASX: MQG) has been working as Bapcor's 'defence adviser' ever since there was reported interest from a private equity group. The Bapcor share price is currently lower than when the private equity group was sniffing around.
According to The Australian's sources, AutoZone is "yet to approach the target", so a takeover offer may not be imminent, but the Bapcor share price has raced ahead on the potential of that.
How is the ASX share performing?
The latest we heard from Bapcor was the FY23 first-half result which showed that revenue rose by 11.2% to $1 billion, earnings before interest, tax, depreciation and amortisation (EBITDA) went up 6.7% to $136 million, earnings before interest and tax (EBIT) climbed 4.5% to $100 million and net profit after tax (NPAT) grew by 2.3% to $62 million.
It also grew its FY23 first-half dividend by 5% to 10.5 cents per share.
In the company's outlook, it said that its Australian trade and wholesale markets are "resilient", while there are "ongoing macro headwinds, with challenges in the retail sector and the New Zealand economy."
Bapcor said it "continues to expect a solid underlying performance in FY23 with slight improvements in trading" in the second half of FY23 compared to the first half, though more progress would be required to further reduced "elevated" inventory levels.
By FY25, the company is aiming to boost its net EBIT by at least $100 million and achieve a return on invested capital of at least 12%.
Bapcor share price snapshot
While it may have risen today, Bapcor shares are actually in the red in 2023 to date as we can see on the chart below.
