** 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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