** Morningstar says divesting noncore wineries and vineyards simplifies operations and reduces costs for Australia's Endeavour Group EDV.AX

** The pub operator said on Wednesday it will sell its wineries and vineyards, scale back its drinks business and cut its dividend payout to save about A$300 million ($214.83 million) by 2029

** The investment research firm says the market is expecting structurally lower long-term cost margins for co

** Morningstar sees liquor retailing sales for co to grow in line with inflation from fiscal 2027, says younger people are moderating their alcohol consumption, expects changes in drinking behavior

** Says cutting dividend payout ratio provides greater flexibility in funding hotel investments for EDV

** It maintains fair value estimate of A$5.4/share for EDV, expects co's price growth to return from 2027 coupled with gains from leaner operations

** YTD, stock down 21.9% as of co's last close

($1 = 1.3965 Australian dollars)