Citi sees tough market conditions to weigh on Australia's Metcash's earnings
** Citi forecasts Metcash's MTS.AX earnings before interest and taxes (EBIT) for FY24 to decline by 3%
** Brokerage estimates 2H24 EBIT for the supermarket wholesaler's Food segment to decline by 2% on falling food inflation and other industry factors
** Brokerage forecasts flat 2H24 EBIT for co's Hardware segment as data from Australian Bureau of Statistics suggests improved trading conditions for Hardware in recent months
** Brokerage expects tax cuts and improved housing turnover to support sales into FY25 for co's Hardware segment
** Metcash is expected to post its FY24 results on June 24
** Among retailers, brokerage prefers Metcash after Coles Group COL.AX and Woolworths Group WOW.AX
** Citi maintains target price A$4.00 and "Neutral" rating
** Stock has risen 9.7% this year, as of last close
($1 = 1.4995 Australian dollars)
Reporting by Sherin Sunny in Bengaluru
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