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Research Alert: CFRA Lifts Opinion On Shares Of Us Foods Holding Corp. To Hold From Sell
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Research Alert: CFRA Lifts Opinion On Shares Of Us Foods Holding Corp. To Hold From Sell
Aug 7, 2025 9:25 AM

12:05 PM EDT, 08/07/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our 12-month target to $89 from $59, based on 19x our 2026 EPS estimate of $4.68 (up from $4.13; 2025 raised to $3.96 from $3.69), in line with USFD's long-term average forward P/E. Q2 results were solid, in our view, but shares are trading lower, likely due to softer-than-expected Q2 case volume growth (impacted by some one-time factors), the lack of a more substantial guidance raise, and confirmation from management that USFD is interested in acquiring Performance Food Group. We think the sell-off is overdone. Case volume growth should accelerate in the back half of the year (USFD noted new customer wins), with margins continuing to trend higher from cost savings and efficiencies. While restaurant foot traffic remains down Y/Y, it appears to be improving relative to early 2025. Also, USFD has a solid balance sheet, with net debt/adj-EBITDA at 2.6x, creating room for additional buybacks. We forecast 26% EPS growth this year and another 18% next year (both ahead of consensus).

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