Oil prices rise on talk of Russia sanctions; bouncing off recent lows
On Wednesday, Citi analyst Karen Holthouse reaffirmed a Buy rating and a $121.00 price target for Performance Food Group (NYSE:PFGC), suggesting a potential 36% upside from the current price of $88.99. According to InvestingPro data, the company, currently valued at $13.87 billion, trades at a relatively high P/E ratio of 36.7x. Holthouse shared her perspective following the company’s investor day, noting that the event likely wouldn’t cause a major shift in the market’s view of the company. However, she pointed out that Performance Food Group’s presentation made a strong case for its PFGC ONE strategy.
Holthouse highlighted three key aspects of the company’s approach: ongoing investment in its core foodservice operations, a channel-agnostic stance within the broader ’food away from home’ sector, and a strategy of internal capital allocation and mergers and acquisitions to expand into new or rapidly growing segments of the market. The company’s strong financial position is evident in its healthy current ratio of 1.61, with liquid assets exceeding short-term obligations, according to InvestingPro analysis.
The analyst expressed confidence in Performance Food Group’s financial plan for fiscal years 2025 to 2028, suggesting that it met investor expectations and provides a buffer to withstand potential challenges without jeopardizing the company’s EBITDA targets for fiscal year 2028. Notably, she emphasized that the plan does not rely heavily on significant M&A activity.
Holthouse concluded that, based on these projections, the company’s valuation remains attractive. Performance Food Group’s strategy and financial outlook appear to align with Citi’s positive assessment, as the company continues to navigate the evolving foodservice landscape.
In other recent news, Performance Food Group (PFG) reported its third-quarter earnings for 2025, revealing a miss on earnings per share (EPS) expectations. The company posted an adjusted EPS of $0.79, falling short of the forecasted $0.89, and revenue also came in below expectations at $15.31 billion against a forecast of $15.35 billion. Despite these results, Performance Food Group reported a 10.5% increase in net sales for the quarter. The company has revised its net sales guidance for the fiscal year to a range of $63 billion to $63.5 billion. Additionally, the Board of Directors announced a new share repurchase program, authorizing the repurchase of up to $500 million of the company’s common stock.
Citi analysts have initiated coverage on Performance Food Group with a Buy rating and a price target of $121.00, indicating potential upside due to ongoing mix shifts within the company’s operations. The analysts noted improvements in gross margin gains and beneficial changes in the Convenience segment as positive factors. Furthermore, Performance Food Group has set financial guidance, maintaining its fiscal 2025 net sales forecast and projecting significant growth by fiscal 2028. These developments reflect the company’s strategic focus on expanding its proprietary brands and enhancing its e-commerce platform.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.