Morningstar upgrades annual earnings guidance for Australia's Metcash

Metcash

11/05/2026 19:34

** Morningstar upgrades FY26 underlying earnings estimate for wholesale distribution firm Metcash MTS.AX by 5% to A$0.25 per share

** On Monday, Metcash said it expects FY26 annual group revenue of A$19.6 billion ($14.21 billion), higher than A$17.3 billion in FY25; no material impact seen on FY earnings from increased freight costs or product costs

** Morningstar maintains A$3.80 fair value estimate, says shares look cheap

** We forecast hardware will improve with a cyclical recovery in construction, underpinning a rebound in group EBIT margins to 3.1% by fiscal 2028, from a cyclical low of 2.9% in fiscal 2026 - Morningstar

** Seven of 12 analysts rate the stock "buy" or higher, four "hold" and one "strong sell"; their median PT is A$3.5 – data compiled by LSEG

** Stock down 11.5% YTD as of last close

($1 = 1.3789 Australian dollars)

 (Reporting by Jasmeen Ara Shaikh in Bengaluru)

 ((Jasmeenaraislam.Shaikh@thomsonreuters.com;))