Citi sees tough market conditions to weigh on Australia's Metcash's earnings

Metcash

19/06/2024 21:21

** Citi forecasts Metcash's  MTS.AX  earnings before
interest and taxes (EBIT) for FY24 to decline by 3% 
    ** Brokerage estimates 2H24 EBIT for the supermarket
wholesaler's Food segment to decline by 2% on falling food
inflation and other industry factors
    ** Brokerage forecasts flat 2H24 EBIT for co's Hardware
segment as data from Australian Bureau of Statistics suggests
improved trading conditions for Hardware in recent months
    ** Brokerage expects tax cuts and improved housing turnover
to support sales into FY25 for co's Hardware segment
    ** Metcash is expected to post its FY24 results on June 24
    ** Among retailers, brokerage prefers Metcash after Coles
Group  COL.AX  and Woolworths Group  WOW.AX  
    ** Citi maintains target price A$4.00 and "Neutral" rating
    ** Stock has risen 9.7% this year, as of last close
    
($1 = 1.4995 Australian dollars)

 (Reporting by Sherin Sunny in Bengaluru)
 ((Sherin.Sunny@thomsonreuters.com))