US Foods Not Immune To Recession But Has Potential To Outperform: Analyst
Portfolio Pulse from Lekha Gupta
Piper Sandler analyst Brian Mullan upgraded US Foods Holding Corp (USFD) to Overweight from Neutral and raised the price target to $59 from $45, citing potential for the stock to reach high $50s/low $60s in the next 12 months. US Foods reported Q4 revenue of $8.936 billion, surpassing estimates, but missed EPS expectations. Despite potential industry slowdowns due to a recession, USFD is expected to outperform its peers. Mullan also revised revenue and EPS estimates for 2024 and 2025 upwards.
February 20, 2024 | 7:10 pm
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US Foods Holding Corp upgraded to Overweight by Piper Sandler with a price target of $59, following strong Q4 results and positive future revenue and EPS revisions.
The upgrade by Piper Sandler to Overweight and the increase in price target to $59 reflect a strong conviction in US Foods' growth potential, especially after surpassing Q4 revenue estimates and providing positive future revenue and EPS guidance. Despite missing EPS expectations for Q4, the overall positive outlook and upward revisions for 2024 and 2025 suggest a bullish sentiment that could drive short-term stock performance upwards.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100