BMO Capital analyst Kelly Bania maintained a Buy rating on The Chefs’ Warehouse (CHEF – Research Report) yesterday and set a price target of $73.00.
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Kelly Bania has given her Buy rating due to a combination of factors that highlight The Chefs’ Warehouse’s strong performance and future potential. The company ended 2024 on a high note with robust organic growth and a notable increase in EBITDA, despite challenges such as a shorter holiday period and adverse weather conditions. This performance, coupled with a quicker-than-expected return to their leverage target, supports Bania’s confidence in the company’s ability to regain and potentially exceed previous valuation levels.
Moreover, CHEF’s strategic acquisitions and facility expansions have laid a solid foundation for achieving a 10% EBITDA target in the coming years. The recent modest expense leverage for the first time in two years further enhances investor confidence in the company’s strategy. Additionally, CHEF’s commitment to maintaining a leverage range and focusing on debt reduction and share repurchases adds to the positive outlook. With a trading valuation that is realigning to pre-COVID levels, Bania sees further upside potential, reinforcing her Buy rating on the stock.
In another report released today, Benchmark Co. also maintained a Buy rating on the stock with a $68.00 price target.
CHEF’s price has also changed dramatically for the past six months – from $36.500 to $59.610, which is a 63.32% increase.