Australia's Metcash gains as brokerages remain upbeat post trading update

Metcash

12/05/2026 01:44

Updates

** Shares of Metcash MTS.AX rise as much as 3.3% to A$3.015 in early trade

 ** Stock is among the top gainers on the broader benchmark .AXJO, which is down 0.3%

** Wholesale distribution firm on Monday said it expects FY26 annual group revenue of A$19.6 billion ($14.21 billion) vs A$17.3 billion last year

** Morningstar upgrades FY26 underlying earnings estimate by 5% to A$0.25 per share

** Also maintains A$3.80 fair value estimate, says shares look cheap

** We forecast hardware will improve with a cyclical recovery in construction, underpinning a rebound in group EBIT margins to 3.1% by fiscal 2028, from a cyclical low of 2.9% in fiscal 2026 - Morningstar

** Jefferies upgrades Metcash to "Buy", raises price target to A$3.5 from A$3.45

 ** Adds Liquor margin rebound is a highlight, the lack of Hardware leg-down since the start of the Middle East conflict is reassuring

** Stock down 9.1% YTD, including the day's moves

($1 = 1.3789 Australian dollars)

(Reporting by Jasmeen Ara Shaikh and Nikita Maria Jino in Bengaluru)

((Jasmeenaraislam.Shaikh@thomsonreuters.com;))