Analyst Alexander Slagle of Jefferies reiterated a Buy rating on US Foods Holding (USFD – Research Report), boosting the price target to $83.00.
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Alexander Slagle has given his Buy rating due to a combination of factors including US Foods Holding’s strong execution of its self-help strategies and potential for continued market share gains. The company’s recent financial performance showed solid results, with net sales aligning with expectations due to higher food inflation, which offset slightly softer case volumes. Slagle notes that the company’s ability to manage operating expenses led to an EBITDA and EPS beat, highlighting efficient cost control measures.
Moreover, the forward guidance for 2025 is seen as achievable, with expected growth in net sales and improving case volumes supported by recent acquisitions and strategic initiatives. The company is leveraging team selling, digital advancements, and productivity improvements to drive further growth. These efforts, along with a focus on higher-margin private-label products and expanding services, position US Foods well for sustainable growth, justifying the Buy rating with a price target increase to $83.
In another report released today, Guggenheim also maintained a Buy rating on the stock with a $80.00 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.