Analyst Peter Saleh of BTIG maintained a Buy rating on US Foods Holding (USFD – Research Report), with a price target of $82.00.
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Peter Saleh’s rating is based on US Foods Holding’s ability to achieve its target of around 10% annual EBITDA growth through various strategies despite a slightly underwhelming sales guidance. The company’s recent performance has shown resilience, with better-than-expected profitability margins. While the sales growth was slightly below estimates due to external factors like hurricanes, the overall trend has improved, and the company continues to meet its profitability goals.
Moreover, despite a lower case growth outlook for 2025 compared to long-term targets, US Foods is expected to leverage cost-cutting measures and SKU reductions to sustain its profit growth. The potential sale of CHEF’STORE is anticipated to unlock significant capital, and the company’s capital allocation strategy, including substantial stock repurchases, further supports its financial robustness. These factors, combined with a favorable valuation outlook, justify the Buy rating with a raised price target of $82.
In another report released yesterday, Barclays also maintained a Buy rating on the stock with a $82.00 price target.
USFD’s price has also changed moderately for the past six months – from $53.820 to $71.110, which is a 32.13% increase.