Company AnalysisInitiate coverage on MTS at Equal-weight with a A$4.15/shr PT: Premised on headwinds in food, supply chain investment by majors, and near-term slowdown in hardware sales.
Industry ChallengesStructural headwinds in Food (driven by investment from majors in supply chain, convenience, and eCommerce) likely difficult to overcome over the longer term.
Sales PerformanceSoftening IHG: Sales -0.6% and network sales flat with LFL -2.0%, showing a decline in the IHG segment.