11:55 AM EDT, 04/04/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We cut our 12-month target to $98 from $122, calculated on an 11.0x EV/EBITDA multiple (was 13.5x) against our FY 25 (May) adj-EBITDA estimate of $1,627M (cut from $1,666M). We cut our FY 24 EPS to $5.59 from $5.96 and FY 25's to $6.05 from $6.31. FQ3 (Feb-Q) adj-EPS of $1.20 (-18% Y/Y) missed by $0.25, with sales of $1,458M missing by $195M, or 12%. FQ3 was a disaster of a quarter, as the ERP transition proved tougher than expected, and restaurant traffic softened globally. The good news is the ERP issue seems mostly isolated to FQ3, noting LW has now restored customer order fulfillment rates to pre-ERP transition levels. Yet, it will still have to win back some of its smaller customers that are currently seeking supply from alternative suppliers. The big unknown is how restaurant traffic trends evolve as we enter FY 25. Nonetheless, LW should see solid price/mix growth from wraparound pricing benefits and capacity expansion. Leverage is low at 2.6x. We see a good buying opportunity following today's selloff.