Challenging conditions for Metcash set to continue, says Citi ahead of results

Metcash

28/11/2024 19:12

** Analysts at Citi expect Australian supermarket wholesaler
Metcash  MTS.AX  to report 1H25 NPAT of A$134 mln ($87 mln), a
decline of 5% from a year before and in line with co's recent
guidance of A$132 - A$135 mln 
    ** "The hardware and liquor markets are showing declining
trends. Moreover, price growth continues to fall in supermarket
and hardware categories, creating a significant headwind for
revenue growth" - Citi
    ** Citi says weak liquor volumes reflect budgetary and
health concerns for many consumers
    ** Brokerage retains "Neutral" rating and A$3.40 target
price
    ** Metcash will report its 1H25 results on Monday, Dec. 2.
    ** Six of 12 analysts rate the stock "buy" or higher, five
"hold" and one "sell"; their median PT is A$3.65– LSEG data
    ** Stock down 10.6% YTD, as of last close
    
($1 = 1.5389 Australian dollars)

 (Reporting by Sherin Sunny in Bengaluru, Editing by Rosalba
O'Brien)
 ((Sherin.Sunny@thomsonreuters.com))