Jefferies ups PT for Australia's Metcash, notes positive momentum in hardware segment

Analysts at Jefferies raise price target for Metcash MTS.AX to A$4.50 from A$4.30; retains "buy" rating

Jefferies says MTS' hardware sales were ahead of consensus for the first 18 weeks of FY26, with IHG and Total Tools outperforming expectations

"We had been concerned it may have been too early for an improvement in Hardware sales, but update suggests positive momentum" — Jefferies

However, brokerage says MTS' food & liquor sales for first 18 weeks of FY26 were below consensus

Brokerage cuts FY26 earnings before interest and taxes forecast for the consumer staples firm by 5% due to A$19 million additional costs expected to be incurred in FY26

"Trade activity remains subdued, but retail margin recovery in 2H25 has been sustained" — Jefferies

Seven of 11 analysts rate the stock "buy" or higher; four hold; their median price target is A$4.35, as per data compiled by LSEG

Stock up 30% YTD, as of last close