Microvast Holdings announces departure of chief financial officer
On Thursday, BMO Capital Markets sustained its optimistic stance on Performance Food Group (NYSE:PFGC) by maintaining an Outperform rating and a $105.00 price target. The stock, currently trading at $89.76 and near its 52-week high of $92.44, has demonstrated strong momentum with a 31% return over the past year. According to InvestingPro data, analysts’ price targets for PFGC range from $85.34 to $121, suggesting potential upside from current levels. BMO Capital’s analysts highlighted key takeaways from Performance Food Group’s Analyst Day, which occurred on Wednesday. The company has set ambitious goals, aiming for a compounded annual growth rate (CAGR) of 10-13% in EBITDA over the next three years, a target that surpasses previous expectations. This growth is expected to be driven by advancements across the company’s three business segments.
BMO Capital’s projections for fiscal years 2025 and 2026 remain unchanged, but forecasts for 2027 and 2028 have been adjusted upward. The firm now anticipates a 10% increase in EBITDA growth for these years, revised from the earlier estimate of 8%. The company’s current EBITDA stands at $1.497 billion, with revenue reaching $57.9 billion and showing a healthy growth rate of 7.2% over the last twelve months. InvestingPro analysis reveals the company maintains good financial health with a strong current ratio of 1.61, indicating solid liquidity management. The reiteration of the Outperform rating and the $105 target price is based on a 12 times enterprise value to EBITDA multiple applied to the firm’s fiscal year 2026 EBITDA projection of approximately $1.9 billion.
Performance Food Group’s Analyst Day presentation outlined strategies to achieve the targeted EBITDA growth, which is underpinned by expansion initiatives in its three core segments. BMO Capital’s analysis places Performance Food Group at the forefront of their "big-3 pecking order," signifying a strong preference for the company among its competitors.
The $105 price target set by BMO Capital Markets reflects the firm’s confidence in Performance Food Group’s growth strategy and its potential to deliver robust financial performance in the coming years. Based on InvestingPro’s Fair Value analysis, the stock appears to be trading above its intrinsic value. Investors seeking deeper insights can access the comprehensive Pro Research Report, which provides detailed analysis of PFGC’s financial health, growth prospects, and industry position among 1,400+ top US stocks. The target is also indicative of the firm’s valuation methodology, which considers both historical and projected earnings before interest, taxes, depreciation, and amortization.
In other recent news, Performance Food Group reported its third-quarter earnings for 2025, revealing a shortfall in earnings per share (EPS) expectations. The company posted an adjusted EPS of $0.79, missing the forecasted $0.89, while revenue was slightly below expectations at $15.31 billion against a forecast of $15.35 billion. Despite these results, Performance Food Group announced a new $500 million stock buyback program, replacing the previous $300 million plan. Additionally, the company maintained its fiscal 2025 net sales forecast of $63 billion to $63.5 billion, with Adjusted EBITDA expected to be between $1.725 billion and $1.75 billion.
Morgan Stanley (NYSE:MS) raised its price target for Performance Food Group to $93, citing the company’s consistent strategy and alignment with new financial targets that slightly exceed the Street consensus. Meanwhile, Citi analysts reaffirmed a Buy rating and a $121 price target, noting the strong case made for the company’s PFGC ONE strategy. Analysts highlighted the company’s ongoing investment in core foodservice operations and strategic mergers and acquisitions as key growth drivers. Citi also pointed out potential upside due to mix shifts within the company’s operations, such as increased higher-margin foodservice sales in the Convenience segment.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.