Stock market today: Nasdaq closes above 23,000 for first time as tech rebounds
Investing.com - Piper Sandler has raised its price target on US Foods (NYSE:USFD), a prominent $17.5 billion player in the Consumer Staples Distribution industry, to $85.00 from $77.00 while maintaining an Overweight rating on the stock. According to InvestingPro data, the company appears fairly valued at current levels, with analysts setting targets ranging from $82 to $103.
The price target increase represents approximately 10% upside potential from current share price levels, according to the research firm’s analysis released Tuesday.
Piper Sandler noted two factors that could drive additional upside for US Foods shares over time. The firm’s analysis suggests that applying the 2026 estimated EV/EBITDA multiple to their 2027 estimates would yield a share price of $91, representing approximately 17% upside from current levels.
The research firm indicated this could be a reasonable way to consider potential upside over the next 12 to 18 months for the foodservice distributor.
Piper Sandler also mentioned that in the event of a hypothetical transaction with Performance Food Group (PFGC), their analysis supports a fair value range of approximately $90 to $100 for the potential combined entity.
In other recent news, US Foods reported its second-quarter earnings for 2025, revealing an adjusted earnings per share (EPS) of $1.19, which exceeded analyst forecasts of $1.13. However, the company missed revenue expectations, reporting $10.08 billion compared to the anticipated $10.19 billion. Despite the revenue shortfall, US Foods raised its adjusted EBITDA guidance for the year following a 12% growth in EBITDA, which surpassed Guggenheim’s projections. Truist Securities responded by raising its price target for the company to $90, maintaining a Buy rating due to strong EBITDA growth. Similarly, Guggenheim increased its price target to $88, while Wells Fargo set a new target of $87, both retaining positive ratings on the stock. These adjustments highlight US Foods’ position as a share consolidator in the industry, with significant self-help initiatives and a robust share repurchase program. The company continues to navigate elevated food manufacturing inflation, which averaged 4.3% from May to July 2025, as noted by Truist.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.