Metcash's New Bull Reassured by Lack of Profit Downgrade -- Market Talk

Dow Jones
05/12

2245 GMT [Dow Jones]--Metcash gets a new bull in Jefferies after signaling an annual net profit broadly in line with consensus hopes. Analyst Michael Simotas notes the recent share-price weakness suggested investors had anticipated a guidance downgrade. Metcash said it expects an underlying net profit of A$268 million-A$270 million. For Jefferies, a rebound in profit margins within Metcash's liquor business is the highlight. It is also reassured by the Middle East conflict having little impact on Metcash's hardware business. "Macro backdrop likely delays the hardware recovery, but weakness is already in the base, limiting downside, and management has proven disciplined on cost and cash flow," Jefferies says, upgrading the stock to buy, from hold. Its price target rises 1.4% to A$3.50/share. Metcash ended Monday at A$2.92. (david.winning@wsj.com; @dwinningWSJ)

 

(END) Dow Jones Newswires

May 11, 2026 18:48 ET (22:48 GMT)

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