Brokers Take Axe To Metcash

By Glenn Dyer | More Articles by Glenn Dyer

Metcash shares suffered more losses yesterday after several broker downgrades on the back of the weak full-year results on Monday.

The shares fell more than 6% to $2.66, taking the two day sell down to more than 15%.

That’s the lowest the shares have been since mid-March.

The shares are still up more than 8.5% year to date.

The company suffered a drop in earnings before interest and taxation of 3% to $183 million, from its core grocery wholesaling operations.

Liquor was a touch weaker while the hardware business reported higher earnings on weaker sales from the downturn in home building and renovations.

Goldman Sachs and JPMorgan both downgraded their recommendation on the stock to neutral while Macquarie downgraded to ‘underperform’.

Glenn Dyer

About Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

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