Australia's Metcash falls after analysts cuts PT, flag headwinds

Metcash

04/12/2023 23:37

(Adds UBS comments and share moves)
    ** Shares of Australia's Metcash  MTS.AX  fall as much as
3.6% to A$3.460, set to mark their worst day since July 18, if
losses hold    
    ** UBS says operating de-leverage headwinds for co's
hardware business are expected to remain in future  
    ** Headwinds are unlikely to dissipate quickly and will be
compounded by rising interest costs - Jefferies  
    ** Brokerages say co's HY NPAT was a 4% (Jefferies) and 2%
(UBS) miss to estimates
    ** Jefferies cuts price target to A$3.60 from A$3.80 while
UBS trims PT to A$4.10 from A$4.25  
    ** Five of 11 analysts rate the stock "buy" or higher, four
"hold" and two "sell" ; their median PT is A$3.95 – LSEG data
    ** As of last close, Metcash stock down 9.8% this year
    

 (Reporting by Nausheen Thusoo in Bengaluru)
 ((Nausheen.Thusoo@thomsonreuters.com;))