Jefferies expects declines for Australia's Metcash's in first half

Metcash

28/11/2023 21:07

** Analysts at Jefferies expect a 2% decline in earnings
before interest and tax (EBIT) for Metcash  MTS.AX  in the first
half of 2024; They expect the fall to translate to a 7% net
profit after tax (NPAT) decline due to higher interest expense
    ** Brokerage retains PT of A$3.80, "hold" rating
    ** Analysts believe conditions getting tougher for each
division of the wholesale distributor, such as Food EBIT growth
remaining broadly flat as customers move towards major chains
due to mounting cost of living pressures
    ** Jefferies, however, expects market share to normalise as
local shopping trends dissipate and consumers look for value
    ** Five of 11 analysts rate stock "buy" or higher, 4 "hold
and 2 "sell" or lower; their median PT is A$4.00 - LSEG data
        ** Stock down 8.3% YTD, as of last close

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