Performance Food Group: Steady Growth Amid Challenges Justifies Hold Rating

Analyst Brian Harbour of Morgan Stanley maintained a Hold rating on Performance Food Group (PFGC – Research Report), retaining the price target of $92.00.

Brian Harbour’s rating is based on a combination of factors influencing Performance Food Group’s current market position and future prospects. Despite a mixed third quarter and modest guidance adjustments, the company is expected to maintain a steady growth trajectory with a projected annual EBITDA growth of around 10% through 2028. This growth is supported by strategic mergers and acquisitions, although organic profit growth has shown signs of moderation.
Harbour acknowledges the challenges posed by the current macroeconomic environment but remains optimistic about the company’s ability to meet its financial targets. The upcoming investor day could serve as a positive catalyst if Performance Food Group successfully communicates its goals and strategies. The company’s focus on the independent restaurant segment and convenience opportunities remains a key driver of its performance. Overall, while the stock has remained relatively flat year-to-date, the balanced sentiment and potential for exceeding EBITDA targets justify the Hold rating.