Jefferies sees mixed FY earnings update for Australia's Metcash

Metcash

17/06/2024 20:35

** Jefferies forecasts for Metcash  MTS.AX  a 0.4% growth in
its 2H earnings before interest and taxes (EBIT), after a 3.4%
decline in EBIT in 1H
    ** Brokerage sees 0.2% decline in 2H revenue (reported) of
the supermarket wholesaler
    ** Says co's Hardware division is cyclically challenged but
well-positioned for improving activity, and expects co to
provide cautious commentary around it
    ** Brokerage adds that co's Total Tools Holdings Pty has a
strong growth pipeline
    ** Metcash is expected to post its FY24 results on June 24
    ** Jefferies keeps the price target for co unchanged at
A$4.30
    ** Eight of 12 analysts rate the stock "buy" or higher,
three "hold" and one "sell"; their median PT is A$4.28 – LSEG
data
    ** Stock has risen 6.6% this year, as of last close

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