Australia's Metcash rises as Morgan Stanley initiates coverage on efficiency gains

Metcash

04/04/2024 24:47

** Shares of Metcash  MTS.AX  rise as much as 0.5% to
A$3.900
    ** Analysts at Morgan Stanley initiate coverage on Metcash
premised on a near-term slowdown in hardware sales, among other
factors
    ** Brokerage initiates coverage with price target of A$4.15
per share and stock rating "equal-weight"
    ** Morgan Stanley says investment from majors in areas such
as supply chain, digital and automation sees MTS
better-positioned to generate efficiency gains
    ** Brokerage ultimately sees structual headwinds for co in
the food segment
    ** Analysts say repositioning of hardware has been a
success, and should continue to be a source of growth
    ** Recent acquisitions highlight potential for further
industry consolidation and bolt-on opportunities within both
food and hardware pillars - Morgan Stanley
    ** Stock has risen 11.2% YTD, as of last close

    

 (Reporting by Shivangi Lahiri in Bengaluru)
 ((shivangi.lahiri@thomsonreuters.com))