BUZZ-Challenging conditions for Metcash set to continue, says Citi ahead of results

Reuters
29 Nov 2024
BUZZ-Challenging conditions for Metcash set to continue, says Citi ahead of results

** Analysts at Citi expect Australian supermarket wholesaler Metcash MTS.AX to report 1H25 NPAT of A$134 mln ($87 mln), a decline of 5% from a year before and in line with co's recent guidance of A$132 - A$135 mln

** "The hardware and liquor markets are showing declining trends. Moreover, price growth continues to fall in supermarket and hardware categories, creating a significant headwind for revenue growth" - Citi

** Citi says weak liquor volumes reflect budgetary and health concerns for many consumers

** Brokerage retains "Neutral" rating and A$3.40 target price

** Metcash will report its 1H25 results on Monday, Dec. 2.

** Six of 12 analysts rate the stock "buy" or higher, five "hold" and one "sell"; their median PT is A$3.65– LSEG data

** Stock down 10.6% YTD, as of last close

($1 = 1.5389 Australian dollars)

(Reporting by Sherin Sunny in Bengaluru, Editing by Rosalba O'Brien)

((Sherin.Sunny@thomsonreuters.com))

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