UBS keeps estimates unchanged for Australia's Metcash on sturdy sales

Metcash

19/09/2023 04:40

** Australian retailer Metcash  MTS.AX  1H24E sales growth
remain moderate; keep earnings estimates unchanged, with a PT of
A$4.50- UBS analysts  
    ** Co's sales were resilient amid consistent activity
slowdown among peers and positive inflation, the brokerage said
in a note 
    ** UBS says co's decline in H1 tobacco sales is less than
peers Woolworths  WOW.AX  and Coles  COL.AX  
    ** Liquor sales remained lower than peers in the period;
competitor and supply rationality remain key risk factors 
    ** Adds moderate independent sales and dry gorcery inflation
supports food sales 
    ** Metcash said on Friday, its total liquor sales were
offset by low on-premises sales 
    ** Shares of the co fall as much as 1.1% at A$3.65, their
lowest since Sept. 6 
    ** Stock is on track for third consecutive session of
losses, fall comes after FY24 sales update 
    ** Analysts' average rating is equivalent of "Buy", with a
median Pt of A$4.0 -LSEG data 
    ** Stock has fallen 7.29% YTD as of last close 

 (Reporting by Manvi Pant in Bengaluru)
 ((Manvi.pant@thomsonreuters.com))