Morningstar expects sales boost for Australia's Metcash as hardware units merge

Metcash

10/06/2025 20:23

** Morningstar raises wholesale distributor Metcash's MTS.AX fair value estimate following the merger of its hardware businesses

** Increases fair value estimate by 3% to A$4.10/share; says shares are undervalued

** MTS on Tuesday said the merger will create a stronger and more resilient hardware business

** Morningstar says a coordinated approach to enhance the hardware business is prudent, but doesn't foresee a significant acceleration in sales growth

** However, it expects a near-term recovery in building activity to boost sales

** Investment research firm raises its FY25 underlying net profit after tax estimate by 2% to A$275 million  ($179.33 million)

** Stock up 13%.2% YTD

($1 = 1.5335 Australian dollars)

 (Reporting by Kumar Tanishk in Bengaluru)

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