Metcash hits lowest since Feb 2021 as Goldman Sachs cuts PT, downgrades to 'sell'

Metcash

22/10/2024 03:35

** Shares of Australia's Metcash Ltd  MTS.AX  drop as much
as 6.5% to A$3.32, their lowest since Feb. 24, 2021 after
Goldman Sachs trimmed PT and downgraded rating 
    ** Brokerage cuts PT to A$3.1 from A$3.8, lowers rating to
"sell" from "neutral" for the supermarket wholesaler
    ** Says, Metcash faces supermarket share loss in
medium-term, given higher exposure to tobacco as a declining
category, and continued rise of ecommerce grocery retail,
same-day delivery by bigger rivals Woolworths, Coles, and Amazon
 
    ** Expects further intensified competition in the hardware
business in medium-term as hardware chain Bunnings continues its
space and range optimization, including revamped tools range at
~50 of its stores
    ** Goldman Sachs cuts FY25-27 EBIT forecast for MTS in range
of 5% to 6%, trims revenue estimates by 1-2%
    ** MTS stock down ~5% YTD
 

 (Reporting by Ayushman Ojha in Bengaluru)
 ((Ayushman.ojha@thomsonreuters.com;))