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Investing.com - Piper Sandler initiated coverage on The Chefs’ Warehouse, Inc (NASDAQ:CHEF) with a Neutral rating and a $66.00 price target on Wednesday. According to InvestingPro data, analysts’ targets for CHEF range from $73 to $85, with the stock currently trading at $63.09.
The research firm expressed admiration for CHEF’s consistent revenue and EBITDA growth over the past decade, achieved through both organic expansion and acquisitions. This growth trajectory is reflected in CHEF’s impressive 19% revenue CAGR over the past five years, with current revenue reaching $3.95 billion.
Piper Sandler indicated confidence in the company’s ability to meet its long-term financial targets through fiscal year 2028, which it considers its base case scenario.
Despite these positive factors, the firm noted that CHEF currently trades at approximately 12 times forward EV/EBITDA, representing a modest premium compared to larger broadline distributor peers in its coverage universe.
The research firm characterized the stock’s risk-reward profile as "relatively balanced" at current levels, suggesting it might adopt a more constructive stance on any pullback in share price.
In other recent news, The Chefs’ Warehouse reported its second-quarter 2025 financial results, surpassing Wall Street expectations. The company achieved an earnings per share of $0.52, beating the forecast of $0.45, which represents a 15.56% surprise. Revenue for the quarter reached $1.03 billion, slightly exceeding the anticipated $1.01 billion. Additionally, UBS raised its price target for The Chefs’ Warehouse to $78 from $72, maintaining a Buy rating after the company’s strong quarterly performance. The specialty food distributor reported an 8.4% net sales growth, surpassing the high end of its 4-7% growth algorithm for the third consecutive period. This growth was achieved despite the company’s strategic move away from certain legacy businesses. These recent developments reflect the company’s ongoing efforts to optimize its business operations.
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