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The Bapcor Ltd (ASX: BAP) share price is pushing higher again on Wednesday.
In afternoon trade, the auto parts retailer and distributor’s shares are up 1.5% to $8.51.
This means the Bapcor share price is now up 44% over the last 12 months.
Why is the Bapcor share price pushing higher?
Investors have been bidding the Bapcor share price higher today after brokers responded positively to its strategy update earlier this week.
That update revealed that Bapcor wants to open more than 694 new stores over the next five years. This includes growing its footprint in Thailand to at least 60 stores over the period. This will be up from six stores at present. Management expects this to help Bapcor grow its total turnover in Asia to $500 million annually
What did brokers say?
Two brokers that are bullish on the Bapcor share price are Citi and Morgan Stanley. In response to its update, they have held firm with their equivalent of buy ratings.
Citi has also lifted its price target to $9.55, whereas Morgan Stanley has held firm with its price target of $9.70.
Based on the current Bapcor share price, this implies potential upside of 12% and 14%, respectively, over the next 12 months.
Citi commented: “Our key takeaway from Bapcor’s strategic update was the company has an abundance of medium to long term growth opportunities which should help it grow in FY22 as it cycles favourable changes to consumer mobility and retail conditions. The key growth drivers include i) rollout within Trade and Retail, ii) private label expansion, iii) international rollout supported by its Thailand JV and recent acquisition of a 25% stake in Tye Soon, and iv) expansion of its Specialist Wholesale business.”
Overall, the broker is confident that Bapcor can deliver solid earnings and dividend growth over its forecast period.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Bapcor. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.