Jefferies upgrades rating, lifts PT on Australia's Metcash, sees potential recovery

Metcash

17/06/2025 23:18

** Jefferies upgrades rating and lifts price target on wholesale distributor Metcash MTS.AX, citing the emergence of foundations for recovery

** Brokerage upgrades rating to "buy" from "hold" and raises PT to A$4.20 from A$3.80

** Highlights MTS' improvements, noting its food & liquor segment retained more COVID market share than anticipated, while the indie supermarkets business remains financially strong

** Sees opportunity from the food services provider Superior's acquisition, with hardware business well-positioned to benefit from a recovery in construction activity

** Brokerage also sees "material" upside, as housing lead indicators show positive trends and channel checks point at improvements in the tools business

** Stock up ~16% YTD

(Reporting by Kumar Tanishk in Bengaluru)

((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk http://www.x.com/thatstanishk))