This ASX 200 share is defying today’s sell-off to hit a 12-year high

Wholesale distribution company Metcash is having an auspicious day on the ASX.

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Key points

  • The Metcash share price is beating the ASX 200 today
  • It just hit a 12-year high
  • Brokers like Metcash shares, with multiple buy ratings

The Metcash Limited (ASX: MTS) share price is outperforming the S&P/ASX 200 Index (ASX: XJO) today. In fact, the wholesale distribution company’s shares just hit a 12-year high.

At the time of writing, the Metcash share price is up 1.73% to $4.70 after earlier hitting an intraday high of $4.725. Meanwhile, the ASX 200 is in the red by 0.56%.

There are many ASX 200 shares losing ground today. For example, the Lake Resources N.L. (ASX: LKE) share price is down 7.8%, Novonix Ltd (ASX: NVX) shares are 7% lower, and the Paladin Energy Ltd (ASX: PDN) share price has fallen 6.3%.

But, while the above names are seeing the biggest declines, it’s the largest businesses that have the greatest influence on the performance of the ASX 200. The BHP Group Ltd (ASX: BHP) share price is down 0.57%, Commonwealth Bank of Australia (ASX: CBA) is down 0.43%, and CSL Limited (ASX: CSL) shares are trading 1.2% lower.

Metcash outperformance

Over the last six months, the Metcash share price has gone up by 17%.

The company is one of the largest wholesalers of food and liquor in Australia. It seems investors are weighing up what an environment of increasing inflation could mean for a business like Metcash.

The broker Macquarie likes Metcash in the space, rating it as a buy with a price target of $4.70. Credit Suisse also rates the business as a buy, with the same price target of $4.70. Credit Suisse believes that the ASX 200 share’s hardware division can generate enough growth for the overall business.

Credit Suisse’s numbers put the Metcash share price at 16x FY22’s estimated earnings.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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