Australia's Metcash posts worst day in over six months; UBS cuts PT on lower earnings

Metcash

23/06/2026 05:20

Updates with UBS comments, share moves
** Australia's Metcash MTS.AX falls as much as 6.1% to A$2.930, their biggest drop since December 1, 2025

    ** UBS analysts cut Metcash's price target to A$3.40 from A$3.50 due to lower earnings, retains "Buy" rating 
  

    ** Rising costs impact soft FY27 EBIT forecast for Metcash - UBS
  

        ** The wholesale distribution firm on Monday reported full-year net profit attributable of A$279.1 million  ($194.64 million), down 4.2% on pcp
** Jefferies also reiterates "Buy" rating for Metcash at a price target of A$3.50, citing strong cash generation, easing tobacco headwinds and material upside to hardware margins 
** Jefferies says management's view on "mid-cycle" hardware margins implies a potential A$13 million – A$54 million EBIT uplift, or 2.5%-10.5% at group level, if conditions improve
** Stock down 7.9% YTD
     
   




($1 = 1.4339 Australian dollars)

 (Reporting by Roshan Thomas in Bengaluru)
 ((Roshan.Thomas@thomsonreuters.com;))