08:45 AM EDT, 05/14/2024 (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 lower our 12-month target by $5 to $140, based on a FY 25 (Jun.) P/E of 16.9x, a justified discount to its 10-year average forward P/E of 22.3x. We raise our adjusted EPS (per ADS) estimates to $7.70 from $8.00 for FY 24 and to $8.30 from $8.80 for FY 25. We lower our estimates to reflect weaker volume expectations as spirits sales (~80% of DEO's net sales) continue to normalize from pandemic-related trends. In the 1H FY 24, DEO's organic sales declined by 5.2%, contributing to operating margin contraction of 330 bps. Results have been especially challenged in the Latin America and Caribbean region. While management has guided toward a gradual improvement in organic net sales in 2H FY 24, we think sluggish sales trends threaten those expectations, as the impact of inflation on consumer budgets weighs on alcoholic beverage sales. With a lack of catalysts, we maintain a Hold opinion, but consider the stock's dividend yield of nearly 3% should help lend support to the stock.