Is Metcash (MTS) a buy?
Is Metcash still a buy at current levels?
Barry C
The Latest Q&A
Answer
Hi Barry,
Metcash (MTS) has been an excellent performer since the outbreak of COVID as have rival Woolworths (WOW) with Coles the clear laggard (COL). In the short term we are neutral around the $4 area however taking a longer term view we think that their hardware business will continue to grow strongly and increase as a proportion of their earnings – as a consequence that should drive a re-rate higher in the stock. We remain comfortable holders of MTS in our Active Income Portfolio and can see the stock being part of the portfolio for a while yet.
