Wells Fargo analyst Edward Kelly has maintained their bullish stance on PFGC stock, giving a Buy rating yesterday.
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Edward Kelly’s rating is based on several encouraging financial metrics and business developments at Performance Food Group. Despite the company reporting a headline EPS figure falling short of expectations, the EBITDA performance exceeded consensus by 3%, signifying underlying strength in the company’s operations. The firm also adjusted its full-year EBITDA guidance upward, indicating confidence in its future performance.
Further contributing to the optimistic outlook, the company’s organic case growth showed acceleration, with notable increases in both total and independent cases. This growth, combined with a strong post-election November and an improved sales outlook, supports a positive trend. Additionally, the food service and convenience segments exhibited robust EBITDA growth, driven by strategic mergers and acquisitions, increased market penetration, and operational efficiencies. Given these factors, Edward Kelly remains bullish on PFGC’s growth potential and its current valuation, which he believes is attractive given the company’s performance trajectory.
In another report released yesterday, Barclays also maintained a Buy rating on the stock with a $103.00 price target.
PFGC’s price has also changed moderately for the past six months – from $63.510 to $88.220, which is a 38.91% increase.