BAP -0.58%: the aftermarket auto parts business hosted an investor day today, with shares falling on weaker commentary. While they have seen strong revenue growth so far this year, margins have been squeezed by higher costs from labour, supply chain and general inflation. They do expect to pass these costs on to customers and margins will revert, however, there will be some lag here. The company spent some time talking about the forecast growth in the Australian car market, and EVs in particular, and how they can leverage this opportunity with new products and services. Overall, despite the margin pressure, we were impressed with today’s presentation.
MM is bullish and long BAP in the Emerging Companies Portfolio
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