Challenging conditions for Metcash set to continue, says Citi ahead of results
** Analysts at Citi expect Australian supermarket wholesaler Metcash MTS.AX to report 1H25 NPAT of A$134 mln ($87 mln), a decline of 5% from a year before and in line with co's recent guidance of A$132 - A$135 mln
** "The hardware and liquor markets are showing declining trends. Moreover, price growth continues to fall in supermarket and hardware categories, creating a significant headwind for revenue growth" - Citi
** Citi says weak liquor volumes reflect budgetary and health concerns for many consumers
** Brokerage retains "Neutral" rating and A$3.40 target price
** Metcash will report its 1H25 results on Monday, Dec. 2.
** Six of 12 analysts rate the stock "buy" or higher, five "hold" and one "sell"; their median PT is A$3.65– LSEG data
** Stock down 10.6% YTD, as of last close
($1 = 1.5389 Australian dollars)
Reporting by Sherin Sunny in Bengaluru, Editing by Rosalba O'Brien
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