2255 GMT - Metcash gets a new bull in Macquarie after the retailer's trading update suggests it is performing well in a challenging environment. Macquarie was positively surprised by Metcash's food sales, which were up 2.6% in the first 18 weeks of FY27 when tobacco is excluded. That growth is likely driven by both volume and price. "Further, Liquor sales being +0.8% suggests modest market share gains against what we expect is a broadly flat market," Macquarie says. And while momentum in Metcash's Hardware business is likely to weaken, Macquarie thinks this is priced into its stock given the valuation discount to peers. It upgrades Metcash to "outperform," from "neutral," and keeps its price target unchanged at A$3.20/share. Metcash ended Wednesday at A$2.87.