Metcash's Hardware Woes May Have Implications for Wesfarmers -- Market Talk

Dow Jones10-28

2202 GMT - Metcash's downbeat trading update is a reminder that hardware is a more volatile business than food, says Citi. This should be considered by investors when assessing what trading multiple Metcash deserves. Analyst Adrian Lemme cuts forecasts for Metcash's net profit by 11% in FY 2025 and by 9% in FY 2026. "The update is also a negative readthrough to Wesfarmers (Sell rated) given Bunnings' exposure to trade/commercial (38% of sales)," Citi adds. The bank retains a neutral call on Metcash and lowers its price target by 15% to A$3.40/share. Metcash ended last week at A$3.19. (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires

October 27, 2024 18:02 ET (22:02 GMT)

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