Morgan Stanley keeps Hold on Metcash stock at AUD 3.30
Published on 10/07/2026 at 01:57 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS
Morgan Stanley maintained a Hold rating on Metcash Limited and set a price target of AUD 3.30 on September 7, 2026, according to Markets Insider. Metcash stock is tied to a wholesale distribution model spanning food, liquor and hardware across Australia and New Zealand.
Sales improve in fiscal 2027
Metcash reported group sales excluding tobacco up 2.8 percent in the first 18 weeks of fiscal 2027, while total sales including tobacco rose 3.5 percent on September 9, 2026. The trading update came through the company presentation for its annual meeting, as reported by SureStone Capital.
Food sales excluding tobacco increased 2.6 percent, Liquor sales rose 0.8 percent and Total Tools and Hardware sales climbed 6.0 percent. Total Tools was the strongest named hardware contributor, with like-for-like network sales up 9.8 percent, according to the same September 9, 2026 company update published by SureStone Capital.
Costs temper the sales picture
The sales comparison is positive, but Metcash said first-half fiscal 2027 earnings face pressure from adverse mix, the end of an accelerated tobacco excise effect and cost inflation in Food and Liquor. The company put the net impact of the tobacco change at AUD 10.0 million in fiscal 2027, weighted toward the first half, according to SureStone Capital.
The latest full-year comparison shows why margin quality matters alongside sales. In fiscal 2026, group revenue reached AUD 19.6 billion, up 0.7 percent, while group EBIT was AUD 503.7 million and underlying profit after tax was AUD 268.8 million. Operating cash flow reached AUD 558.0 million and the fully franked dividend totaled AUD 0.18 per share, according to the September 9, 2026 update.
Prior close anchors the quote
Metcash stock had a prior close of EUR 1.87 at Lang & Schwarz on October 5, 2026. The reference level is separate from Morgan Stanley's AUD 3.30 target and from Metcash's ASX quotation in Australian dollars.
The further course of trading is shown by the continuously updated real-time quote of Metcash stock.
Metcash stock facts
- Company: Metcash Limited
- ISIN: AU000000MTS0
- Ticker: MTS.AX
- Primary exchange: ASX
- Prior close Lang & Schwarz: EUR 1.87 on October 5, 2026
- Sector: Consumer Staples
- Industry: Food Distribution
