US Foods initiated with a Buy at Citi

Citi initiated coverage of US Foods with a Buy rating and $95 price target The firm views the North America food distributor industry backdrop favorably, saying restaurant wallet share is a likely “buffer” to macro risks while the sector has limited tariff risk. Citi sees Performance Food Group (PFGC) and US Foods (USFD) as “firmly in positive feedback loops,” with growth driving leverage and operating efficiencies that can be used to spur future growth. It is still too soon to own Sysco (SYY) for easier compares and an inflection in independent restaurant sales, the analyst tells investors in a research note.