Wells Fargo analyst Edward Kelly has maintained their bullish stance on USFD stock, giving a Buy rating yesterday.
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Edward Kelly has given his Buy rating due to a combination of factors influencing US Foods Holding’s performance. The company reported a strong fourth-quarter earnings beat, with EPS and EBITDA figures surpassing market expectations, demonstrating effective profit management strategies despite lower-than-expected case volumes. The company’s guidance for 2025 aligns with industry algorithms and peers, suggesting a solid outlook.
Furthermore, US Foods has shown resilience through its self-help initiatives, which have significantly driven profit per case. This includes robust gross profit growth and controlled operating expenses, contributing to a notable EBITDA growth rate. Additionally, the company’s strategy to capitalize on an improving industry backdrop, alongside its effective cost-saving measures and share repurchase programs, supports its potential for substantial EPS growth, making it an appealing investment opportunity at its current valuation.
In another report released yesterday, Barclays also maintained a Buy rating on the stock with a $82.00 price target.