Bapcor Surges 14% on New CEO: Time to Buy More or Hold?

Bapcor (ASX: BAP) jumped 14 per cent to A$2.02 on Thursday after announcing CEO Angus McKay has resigned, just 16 months into the job. The market’s reaction tells you everything about how investors felt. When a stock rallies by double digits because the boss is leaving, it means shareholders wanted a change. The question now is whether Chris Wilesmith, the incoming CEO with deep experience in car parts retail, can turn this struggling business around.

What makes this announcement surprising is the timing. On 24 November 2025, the board technically ‘refreshed’ its leadership, stripping McKay of his Executive Chair title but publicly stating he would continue as CEO to lead the turnaround. They said he would lead the company’s five-year turnaround plan. That support didn’t last long, and the quick change suggests the board moved fast once Wilesmith became available.

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Why the Market Loves This CEO Pick

Chris Wilesmith brings exactly what Bapcor needs right now: real experience running the kind of businesses that Bapcor operates. He spent seven years as Managing Director of Supercheap Auto, one of Bapcor’s direct competitors, owned by Super Retail Group (ASX: SUL). This means he knows the automotive parts market inside and out.

For a company that has struggled to run its operations smoothly, this background matters a lot. Wilesmith has managed profitable retail businesses with complex supply chains. His time at Supercheap Auto is especially useful since that brand has been taking customers away from Bapcor’s Autobarn stores in recent years. He also served as CEO of Jaycar Electronics and CEO of Mitre 10 New Zealand, giving him broad retail leadership experience.
Wilesmith officially starts on 14 January 2026, with McKay helping during the handover period.

A History of Leadership Problems

Investors should understand the bigger picture here. This will be Bapcor’s third CEO in just over two years if you count the interim period under Mark Bernhard. Before McKay was appointed as Executive Chair and CEO in August 2024, the original CEO-elect, Paul Dumbrell, decided not to take the job at all.

This kind of leadership churn makes it difficult to execute any strategy, no matter how good it looks on paper. The company has also lost several board members along the way. While the new appointment looks promising, Bapcor desperately needs stability to actually deliver results.

The Investor’s Takeaway: Hold, But Watch Closely

Despite today’s rally, Bapcor remains deeply undervalued. While Morningstar historically held a much higher fair value, analysts recently revised targets towards the $3.00 to $3.40 range following the December profit warning. Even at this adjusted level, the current A$2.02 price suggests significant upside if the turnaround succeeds.

However, the risks are real. The company expects a statutory NPAT loss of $5 million to $8 million for the first half of FY26, though underlying profit (excluding one-off costs) is expected to remain slightly positive between $5 million and $8 million.

Our view is that current holders should stay put for now. Selling after a 14 per cent bounce seems like poor timing, especially when the new CEO has strong credentials. But we’d want to see Wilesmith explain his plan and show early progress before buying more shares. For investors watching from the sidelines, a pullback towards A$1.80 would offer a better entry point with less risk. The turnaround story remains alive, but it needs proof, not just hope.