US Foods price target raised to $85 from $77 at Piper Sandler

Piper Sandler raised the firm’s price target on US Foods (USFD) to $85 from $77 and keeps an Overweight rating on the shares. The firm says two factors worth pointing out that argue for additional upside are as follows: if Piper was to hold US Foods’ 2026 EV/EBITDA multiple constant and apply it to its 2027 estimates, this would yield a share price of $91, which represents 17% upside from current levels; which might be a good way to think about upside over the next 12 to 18 months; and in the event that a Performance Food Group (PFGC) transaction were to be consummated, Piper’s work is supportive of a fair value in the $90 to $100 range for the pro forma entity.