Brokerage Morningstar upbeat on Australia's Metcash on $362.13 mln acquisitions

Metcash

05/02/2024 18:35

** Brokerage Morningstar is upbeat on supermarket wholesaler
Metcash  MTS.AX  in long term on its acquisition of private food
services provider Superior Food Group, among two other
businesses for a total enterprise value of A$558.5 million 
($362.13 million)
    ** Brokerage gives a fair value estimate of A$4.00     
    ** "From fiscal 2026, we think synergies will kick in,
largely offsetting the effect of dilution and leaving our
longer-term EPS forecasts broadly intact" - Morningstar said on
deal with Superior 
    ** Brokerage's full fiscal 2024 sales growth estimate is
unchanged at 1.6%
    ** Six of 10 analysts rate the stock "buy" or higher, two
"hold" and two "sell" or lower; their median PT is A$4.05 – LSEG
data
    ** MTS was up 4.3% YTD, as of last close


($1 = 1.5423 Australian dollars)

 (Reporting by Adwitiya Srivastava in Bengaluru)
 ((Adwitiya.Srivastava@thomsonreuters.com;))