Performance Food Group stock rating upgraded by Piper Sandler to Overweight

Published 02/09/2025, 09:14
Performance Food Group stock rating upgraded by Piper Sandler to Overweight

Investing.com - Piper Sandler upgraded Performance Food Group (NYSE:PFGC) from Neutral to Overweight on Tuesday, while raising its price target to $114.00 from $90.00. The stock, currently trading at $101.40, has demonstrated strong momentum with a 35.85% return over the past year and is trading near its 52-week high of $103.50. According to InvestingPro analysis, the company maintains a GOOD Financial Health Score.

The upgrade reflects Piper Sandler’s positive view of Performance Food Group’s risk-reward profile, citing the company’s strategy execution and multi-year financial targets presented at its May 2025 Investor Day.

The research firm believes Performance Food Group can achieve "reasonably attractive upside" based solely on executing its stated strategy and meeting financial goals over time.

Piper Sandler also noted that the "ongoing situation with USFD" represents a potential catalyst that could accelerate upside beyond their $114 price target in certain scenarios.

The firm indicated that while their base case for upside relies on execution and time, any transaction related to USFD’s interest could expedite potential gains if such a deal were to materialize.

In other recent news, Performance Food Group has reported robust financial results for the fourth quarter of fiscal year 2025. The company surpassed analyst expectations with an adjusted earnings per share (EPS) of $1.55, exceeding the projected $1.45, and achieved revenue of $16.9 billion, slightly above the anticipated $16.78 billion. Following these strong earnings, Truist Securities raised its price target for the company to $118, maintaining a Buy rating, and highlighted the solid guidance provided for fiscal year 2026. Guggenheim also increased its price target to $115, citing a strong fourth-quarter performance and initial 2026 outlook, although they maintained a Neutral rating. Additionally, Wells Fargo adjusted its price target to $115, keeping an Overweight rating, after noting the earnings surpassed expectations. Guggenheim reiterated a Buy rating, emphasizing potential profit gains through procurement and productivity initiatives. Despite these positive developments, Performance Food Group has opted to remain independent, rejecting a merger interest from US Foods. These updates reflect a period of significant activity and positive financial performance for the company.

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