12:45 AM EDT, 06/06/2024 (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 lift our 12-month target by $1 to $16, calculated using a 5.0x EV/EBITDA multiple against our FY 25 (Jul.) adj-EBITDA of $583M (up from $513M). We lift our FY 24 EPS to $0.12 from -$0.13 and FY 25's to $1.13 from $0.24. F3Q (Apr-Q) sales of $7,498M (flat Y/Y) were in line with consensus. Whole Foods was the only segment where UNFI saw growth (+5% Y/Y), as sales continue to be soft among independent grocers (-3% Y/Y), other chains (-1% Y/Y), and in UNFI's retail business (-5% Y/Y). Adj-EBITDA of $130M fell $29M Y/Y but would have been up about $4M Y/Y excluding incentive comp, a sign that UNFI's cost savings initiatives are starting to bear fruit. UNFI raised its adj-EPS and adj-EBITDA outlook for FY 24. More importantly, the company states it will generate about $100M in FCF in FY 25, which it will use to de-lever the balance sheet (current leverage ratio is 4.6x). UNFI will lean on its higher-margin services business to drive growth. This business is small but has been a meaningful profit driver.