01:15 PM EST, 03/06/2024 (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 cut our 12-month target by $3 to $15, calculated using a 6.0x EV/EBITDA multiple against our FY 24 (Jul.) adj-EBITDA of $486M (raised by $1M, but below the midpoint of UNFI's guide of about $500M). Our revised target price reflects higher expected net debt (was $2.16B as of FQ2; leverage is 4.3x), as capex spend continues to be heavy ($400M expected this year; +24% Y/Y). We cut our FY 24 adj-EPS to -$0.13 from $0.06 and FY 25's to $0.24 from $0.41. FQ2 (Jan-Q) adj-EBITDA of $128M (-29% Y/Y) beat by $8M. However, revenues of $7,775M (-0.5% Y/Y) missed by $98M. Inflation moderated to about 2% in the quarter (was 8% in the prior year quarter), implying unit volumes likely decreased by about 3%, driven by consumers continuing to shift purchases away from traditional grocery channels and into mass merchandisers and discounters. UNFI continues to cycle procurement gains from last year, which we see continuing to put some pressure on margins. We remain at Hold given the lack of a clear long-term strategy.