BUZZ-Australia's Metcash rises as Morgan Stanley initiates coverage on efficiency gains

Reuters04-04

** Shares of Metcash rise as much as 0.5% to A$3.900

** Analysts at Morgan Stanley initiate coverage on Metcash premised on a near-term slowdown in hardware sales, among other factors

** Brokerage initiates coverage with price target of A$4.15 per share and stock rating "equal-weight"

** Morgan Stanley says investment from majors in areas such as supply chain, digital and automation sees MTS better-positioned to generate efficiency gains

** Brokerage ultimately sees structual headwinds for co in the food segment

** Analysts say repositioning of hardware has been a success, and should continue to be a source of growth

** Recent acquisitions highlight potential for further industry consolidation and bolt-on opportunities within both food and hardware pillars - Morgan Stanley

** Stock has risen 11.2% YTD, as of last close

(Reporting by Shivangi Lahiri in Bengaluru)

((shivangi.lahiri@thomsonreuters.com))

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