Performance Food Group stock price target raised to $115 by Guggenheim

Investing.com - Guggenheim raised its price target on Performance Food Group (NYSE:PFGC) to $115.00 from $105.00 on Thursday, while maintaining a Neutral rating on the stock. The company’s shares, currently trading at $101.27, are near their 52-week high of $103.50, having delivered an impressive 40.17% return over the past year. According to InvestingPro analysis, the stock appears to be trading above its Fair Value.

The price target increase follows what Guggenheim described as "a strong, balanced 4Q print and initial 2026 outlook" from the food distribution company. The firm noted that Performance Food Group has decided to reject US Foods’ merger interest, preferring to continue as an independent business. With a market capitalization of $15.81 billion and revenue growth of 15.76%, InvestingPro data shows PFGC maintains strong financial health, with 12 additional key insights available to subscribers.

Guggenheim highlighted Performance Food Group’s "industry-leading top and bottom-line growth" resulting from strategic acquisitions, investments in its sales force, and favorable gross margin expansion. The firm believes these factors are not fully reflected in the current 10.2x multiple on 2026 estimated EBITDA.

The analyst report indicated that Performance Food Group’s success is the primary reason it has declined to engage in merger discussions with US Foods, with Guggenheim stating this philosophy is "unlikely to change."

With EBITDA projected to grow over 10% and potential for multiple expansion, Guggenheim sees the possibility of the stock going even higher over the next two years beyond the new $115 target.

In other recent news, Performance Food Group delivered robust financial results for the fourth quarter of fiscal year 2025, surpassing analyst expectations. The company reported an adjusted earnings per share (EPS) of $1.55, exceeding the projected $1.45. Additionally, actual revenue came in at $16.9 billion, slightly higher than the anticipated $16.78 billion. Following these results, Wells Fargo raised its price target for Performance Food Group to $115 from $100, maintaining an Overweight rating. Wells Fargo’s analysis highlighted the strong fourth-quarter performance as a key factor in the price target adjustment. These developments reflect a positive outlook for the company based on recent financial achievements.

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