27/06/2023 09:27

Metcash Ltd (MTS) $3.76

MM covered MTS yesterday afternoon, we believe the solid result should help placate the market worries around customer retention after COVID lockdowns and the transition of cash-strapped shoppers to cheaper options such as ALDI. While scale is a very important buffer when times toughen, and for this reason, Woolworths (WOW) is the preferred play of many fund managers, we believe these scale benefits are more than captured in the price, with WOW trading on 26x FY24 earnings while Metcash languishes on just 12x.

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26/06/2023 16:49

Metcash (MTS) $3.76

MTS +4.74%: Full-year results out this morning were solid, and marginally ahead of consensus expectations. Underlying profit of $307.5 million was up 2.6% YoY and above Bloomberg consensus of $299.5 million.

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28/03/2023 09:19

Metcash Ltd (MTS) $3.88

MTS dominates throughout rural Australia while also performing strongly in the major cities with old habits dying slowly as many people have become used to the more convenient local stores such as IGA.

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15/03/2023 09:26

Metcash (MTS) $3.80

The food, liquor and hardware wholesaler copped a downgrade from Goldman Sachs on Friday and shares have underperformed as a result as the broker reduced their price target to $3.50/sh and put a sell on the stock. GS argued that moderating inflation and further competition from the major supermarkets, particularly online, would weigh on market share for Metcash which supplies IGA supermarkets, all at a time when capex spend is peaking.

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01/03/2023 09:36

Metcash (MTS) $4.07

A different reporting cycle, however, as a refresh, we own Metcash due to 1. Relative valuation trading on 13x forward while yielding 6.14% FF

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09/02/2023 09:05

Metcash Ltd (MTS) $4.02

In December we saw the 1H23 results from the grocery wholesaler and growing hardware operative believing they were solid in all key metrics, hence we continue to believe MTS will continue to be a slow burn on the upside with our eventual target remaining at $5.00 which by definition makes the risk/reward appealing under $4. • We hold MTS in our MM Active Income Portfolio for its forecasted +6% fully franked yield over the next 12 months.

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07/12/2022 09:27

Metcash (MTS) $4.28

We got 1H23 results from the grocery wholesaler and growing hardware operative earlier this week and they were solid in all key metrics, this performance has driven the share price 8% higher over the measured period. While we originally bought MTS at $3.50 and collected some nice dividends along the way, we think MTS will continue to be a slow burn on the upside with our eventual target sitting at $5.00.

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05/12/2022 16:55

Metcash (MTS) $4.24

MTS +0.24%: Released 1H23 results this morning that were ahead of expectations led by Hardware & Food. They also pointed to a strong start to 2H23 so all seems to be rosy for MTS.  Sales of $8.9bn was +7.8% y/y while underlying EBIT of $255.1m was +10.3% y/y, & around 6% ahead of market expectations. The 11.5cps dividend was also a beat. We own...

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26/10/2022 09:39

Metcash (MTS) $3.96

Around $4, we think Metcash should attract yield-hungry investors that pocket the dividend from the banks and look for the next ‘pay-day’. While we have covered the investment thesis on MTS a number of times (available on the company page here), the brief version is:

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20/10/2022 09:40

Metcash Ltd (MTS) $3.95

This week grocery and hardware wholesaler MTS put on a 2-day investor briefing in Adelaide, and the message from the suppliers to IGA, Foodland, Porters Liquor, Mitre 10 & more was solid:

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