Analyst Edward Kelly from Wells Fargo assigned a Buy rating on US Foods Holding (USFD – Research Report) and increased the price target to $63.00 from $60.00.
Edward Kelly has given his Buy rating due to a combination of factors including US Foods Holding’s solid performance in a challenging quarter and the company’s ongoing self-help measures that seem to be driving growth. Despite labor and macroeconomic issues, the company not only outperformed consensus earnings expectations but also exhibited strong case growth and EBITDA improvement. Kelly’s optimism is further supported by management’s guidance, which he believes may be conservative given US Foods Holding’s current momentum.
The narrative of self-help and share gains is central to Kelly’s bullish stance, as US Foods Holding has demonstrated resilience through industry headwinds and showcased potential for further growth. The company’s new sales compensation model and other growth initiatives like Pronto are adding to its strength. Looking ahead, Kelly anticipates a significant uptick in earnings momentum, driven by volume improvements, operational efficiencies, and strategic buybacks, reinforcing his confidence in the stock’s performance and justifying an increased target price.
Kelly covers the Consumer Defensive sector, focusing on stocks such as Kroger Company, US Foods Holding, and Target. According to TipRanks, Kelly has an average return of 9.5% and a 64.01% success rate on recommended stocks.
In another report released yesterday, Barclays also assigned a Buy rating to the stock with a $60.00 price target.
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
US Foods Holding (USFD) Company Description:
US Foods Holding Corp. operates as a foodservice distributor. Its products include frozen and dry food and non-food products to foodservice customers throughout the U.S. The company offers services under brands Chef’s Line, del Pasado, Glenview Farms, Cattleman’s Selection, Cross Valley Farms, Harbor Banks, Hilltop Hearth, Devonshire, and Metro Deli. The company is headquartered in Rosemont, IL.
