03:30 PM EDT, 06/07/2024 (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 CAD4 to CAD36, calculated using a FY 25 (Mar.) EV/EBITDA of 11x vs. the 12x long-term average. We up our FY 25 EPS to CAD1.88 from CAD1.79 and begin FY 26's at CAD2.05. FQ4 (Mar-Q) adj-EBITDA of CAD379M (-3% Y/Y) beat by CAD11M on revenues of CAD4,545M (+2% Y/Y), CAD236M above consensus. The FY 25 outlook was encouraging, as SAP believes the dairy markets in the U.S. will improve throughout the year. SAP will also cycle inventory headwinds in Europe and work to reduce duplicate operating costs in the U.S. market. Overall, SAP should see benefits throughout its manufacturing footprint following three years of investments and network optimization. Free cash flow should increase in FY 25 from double-digit adj-EBITDA growth and a reduction in capex, as we estimate about CAD420M in capex in FY 25, down from CAD654M in FY 24. Our Buy view reflects SAP's discounted valuation and improving fundamentals. Net leverage is currently 2.3x, but will likely be about 2.0x by fiscal year-end.