Morningstar says Bapcor shares materially undervalued

** Morningstar says shares of Australia's Bapcor BAP.AX are materially undervalued compared with its unchanged fair value estimate of A$1.60 per share, with the market effectively pricing in almost no recovery in EBITDA margins

** Investment research firm forecasts EBITDA margins recovering to around 12% over the next decade driven by operating leverage, improved buying power, and higher private-label penetration

** Morningstar maintains its 2027 revenue forecast of A$1.9 billion, about 1% higher than last year

** Says its unchanged 2027 underlying net profit forecast of A$23 million is more than twice as much as last year's

** Stock down 41.3% for the year, as of last close