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US Foods Holding: Margin Expansion and Growth Prospects Justify Buy Rating

US Foods Holding: Margin Expansion and Growth Prospects Justify Buy Rating

Jake Bartlett, an analyst from Truist Financial, maintained the Buy rating on US Foods Holding. The associated price target was raised to $90.00.

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Jake Bartlett’s rating is based on US Foods Holding’s ability to achieve margin expansion through self-help initiatives, even amidst challenging macroeconomic conditions. The company has shown resilience by increasing its adjusted EBITDA guidance following a beat in the second quarter, driven by strong gross margins and controlled operating expenses.
Furthermore, US Foods Holding is expected to see accelerated case growth in the second half of 2025, supported by new account growth, improved service levels, and increased digital penetration. The company’s strategic initiatives, including vendor management and cost savings, are projected to contribute to sustained EBITDA margin expansion. These factors collectively provide confidence in the company’s growth prospects, justifying the Buy rating.

In another report released today, Barclays also maintained a Buy rating on the stock with a $95.00 price target.

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