MTS – Citi rates the stock as Neutral

Following 1H results for Metcash, Citi assesses a step-change for earnings in Hardware. The broker upgrades FY22-24 earnings (EBIT) forecasts  by 9%, 8% and 4%, respectively, and lifts its target price to to $4.40 from $4.20.

Total Tools provided the largest boost within Hardware as sales pruductivity lifted, explains the analyst.

Management disclosed sales growth in the first five weeks of the 2H was 2.3% for Food, 20.1% in Hardware and 7.6% in Liquor. The analyst maintains a Neutral rating and expects an eventual normalisation of trading.
Sector: Food & Staples Retailing.


Target price is $4.40.Current Price is $4.24. Difference: $0.16 – (brackets indicate current price is over target). If MTS meets the Citi target it will return approximately 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).



About Broker News

FNArena's Australian Broker Call, is your daily news report on the latest recommendation, valuation, forecast and opinions recently published by Stockbrokers.

View more articles by Broker News →