11:04 AM EDT, 08/14/2025 (MT Newswires) -- Performance Food Group ( PFGC ) delivered arguably the strongest quarter among the three major food distribution companies, supported by "robust" organic growth compared with its peers, Morgan Stanley said in a note Thursday.

The analysts said that the company, like its competitors, is seeing improving trends among independent restaurants. Volume from these customers has picked up quarter-to-date, giving the company confidence in achieving around 6% organic case growth from independent accounts in fiscal year 2026, assuming the broader economic environment remains stable.

Guidance for fiscal Q1 was relatively lighter than expected for both revenue and adjusted earnings before interest, taxes, depreciation, and amortization, or EBITDA, largely due to seasonal factors tied to last year's acquisitions. However, if current trends continue, that guidance could prove to be conservative, the analysts said.

"We have similar views on fiscal year 2026 revenue and adjusted EBITDA guidance as well. Inventory gains helped on gross profit margin, offsetting any increase in operating expenses, though likely as a result of higher salesforce hiring to continue to drive organic growth," the analysts said, adding that the company seems to be on track toward

achieving or exceeding the three-year targets outlined in May.

Morgan Stanley raised its price target on Performance Food Group ( PFGC ) to $102 from $96 while keeping its equalweight rating.

Price: 100.61, Change: -0.66, Percent Change: -0.65