Australia's Metcash climbs as brokerages see hardware business recovery

Metcash

24/06/2025 04:05

** Shares of wholesale distributor Metcash MTS.AX rise 1.7% to A$3.86, set for their fifth session of consecutive gains

** Analysts at Morningstar say MTS's FY results were soft but in line with expectations

** Adds, hardware business was weakest due to commercial trade exposure and subdued construction market but expects the segment's operating margins to improve materially in FY26

** Morningstar maintains fair value estimate of A$4.10/share

** UBS says results hit upper end of guidance, with hardware business recovery as key share price driver

** Brokerage raises price target to A$4.25/share from A$4/share and maintains 'Buy' rating, citing resilient core food and liquor ops with contract wins a growth option

** Stock up 24.7% YTD

(Reporting by Kumar Tanishk in Bengaluru)

((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk http://www.x.com/thatstanishk;))