Australia's Metcash edges higher; Citi backs hardware merger

Metcash

10/06/2025 01:59

** Metcash shares MTS.AX rise 2% to A$3.5

** Plans to merge its Independent Hardware Group and Total Tools Holdings businesses

** Merger will enable ops to be streamlined in a down market and provide an opportunity to better co-ordinate across the brands, say analysts at Citi

** Brokerage says co's FY25 EBIT forecast of A$504 mln($328.41 mln)-A$508 mln is in-line with market consensus

** Citi rates stock "buy", A$3.7 PT

** Seven of 12 analysts rate it "buy" or higher, four "hold" and one "sell"; median PT A$3.7 – according to data compiled by LSEG

** Stock up 11.8% YTD

($1 = 1.5347 Australian dollars)

 (Reporting by Rishav Chatterjee in Bengaluru)

 ((Rishav.Chatterjee@thomsonreuters.com;))