In a report released today, Ajay Jain from Pivotal Research reiterated a Hold rating on Performance Food Group (NYSE: PFGC), with a price target of $31. The company’s shares opened today at $32.90.
Jain noted:
“We believe the continued focus on independents is increasingly coming at a cost as all of the big three distributors are investing in their sales force. We’ve updated our model and while our revised FY19 EPS est. of $1.70 is below the preliminary guidance range of $1.72-$1.82, the change in our FY19 EBITDA est. isn’t as material based on the updated D&A guidance provided by mgt. At a target multiple of 9-10x EV/EBITDA, the implied valuation range is $28-$33/share. Based on the mid-point of the range, our $31 PT is unchanged.”
According to TipRanks.com, Jain is a 4-star analyst with an average return of 7.6% and a 53.2% success rate. Jain covers the Services sector, focusing on stocks such as Walgreens Boots Alliance, US Food Holdings Corp, and United Natural Foods.
Performance Food Group has an analyst consensus of Strong Buy, with a price target consensus of $41.
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Based on Performance Food Group’s latest earnings release for the quarter ending June 30, the company reported a quarterly net profit of $64.4 million. In comparison, last year the company had a net profit of $40.4 million.
Based on the recent corporate insider activity of 67 insiders, corporate insider sentiment is negative on the stock.
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Performance Food Group Co. engages in the market and distribution of food products. It operates its business through the following segments: Performance Foodservice; PFG Customized; Vistar; and Corporate and All Other.
