** Jefferies recommends "hold" on Aussie retailer Metcash MTS.AX
** Sees EBIT margins declining since FY22/FY23 due to disinflation, cost inflation and theft, but continues to remain at healthy levels
** Brokerage sees moderating food inflation a near-term challenge to co
** Hardware business impacted due to operating deleverage resulting from weak building activity — Jefferies
** Brokerage sees solid margins, return on capital employed (ROCE) and low debt as positives
** Maintains PT of A$3.40, compared to last closing price of A$3.31
** 7 of 12 analysts rate the stock "buy" or higher, 4 "hold" and 1 "sell"; their median PT is A$3.70 — LSEG
(Reporting by Nichiket Sunil in Bengaluru)
((Nichiket.Sunil@thomsonreuters.com))
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