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US Foods: Sustained Margin Expansion and Earnings Power Support Buy Rating and Higher Price Target

US Foods: Sustained Margin Expansion and Earnings Power Support Buy Rating and Higher Price Target

BTIG analyst Peter Saleh has maintained their bullish stance on USFD stock, giving a Buy rating today.

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Peter Saleh has given his Buy rating due to a combination of factors tied to US Foods’ consistent execution and earnings power. The company continues to post strong double-digit gains in adjusted EBITDA and EPS, even as case volume growth has been modest, thanks to ongoing efficiency and cost-reduction programs that are sustaining margin expansion and bolstering free cash flow.

He also highlights a supportive outlook through 2026–2027, with additional self-help savings, moderating inflation, and healthy growth in higher-value customer segments underpinning management’s long-term targets. While acknowledging that the valuation has risen to historically elevated levels, he believes the enhanced earnings trajectory justifies a higher multiple and supports his increased $110 price target, keeping a positive stance on the shares.

In another report released today, Citi also maintained a Buy rating on the stock with a $118.00 price target.

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