BTIG analyst Peter Saleh has maintained their neutral stance on PFGC stock, giving a Hold rating on January 21.
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Peter Saleh has given his Hold rating due to a combination of factors impacting Performance Food Group. The company posted strong quarterly results with better-than-expected sales and gross margin performance, driven by new accounts and strategic acquisitions. However, despite these positive results, Saleh perceives the company’s guidance as conservative, especially considering the steady sales trends and stable inflation that could potentially lead to a better performance than guided.
While the foodservice segment showed significant profit growth and is expected to benefit further from acquisitions in the coming quarters, there are still concerns about potential integration risks associated with recent acquisitions and the company’s modest return profile. Saleh’s valuation is based on the company’s current sales trends and the expected benefits from acquisitions, leading to a cautious outlook reflected in the Hold rating.
In another report released on January 21, Morgan Stanley also maintained a Hold rating on the stock with a $96.00 price target.
Based on the recent corporate insider activity of 67 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PFGC in relation to earlier this year.