Pivotal Research analyst Ajay Jain reiterated a Hold rating on US Food Holdings Corp (USFD) today and set a price target of $38. The company’s shares opened today at $38.06.
Jain commented:
“We are raising price target for USFD to $38 (from $32) following solid results in 1Q19 which were accompanied by strong independent case growth. This follows a very inconsistent performance throughout FY18 in which USFD experienced top-line pressures and operational challenges. Customers have responded favorably to the latest Scoop product rollout. It should still be noted that US Foods’ overall growth profile and relative earnings growth are still below that of PFGC and SYY. Operating expenses remain pressured based on higher wages and supply chain costs. The most positive read through in the latest results was the continued sequential improvement in organic growth for independents. USFD is getting its mojo back with its independent business based on 5.5% organic case growth in the latest quarter.”
According to TipRanks.com, Jain is a 4-star analyst with an average return of 12.6% and a 58.6% success rate. Jain covers the Services sector, focusing on stocks such as Walgreens Boots Alliance, United Natural Foods, and Kroger Company.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for US Food Holdings Corp with a $40 average price target.
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US Food Holdings Corp’s market cap is currently $8.27B and has a P/E ratio of 20.29. The company has a Price to Book ratio of 2.56.
Based on the recent corporate insider activity of 60 insiders, corporate insider sentiment is negative on the stock.
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US Foods Holding Corp. operates as a foodservice distributor. Its products include frozen and dry food and non-food products to foodservice customers throughout the U.S. The company offers services under brands Chef’s Line, del Pasado, Glenview Farms, Cattleman’s Selection, Cross Valley Farms, Harbor Banks, Hilltop Hearth, Devonshire, and Metro Deli.
