US Foods (USFD) PT Raised to $59 at CFRA

CFRA analyst Arun Sundaram raised the price target on US Foods (NYSE: USFD) to $59.00 (from $58.00) while maintaining a Sell rating.

The analyst comments "We raise our 12-month target by $1 to $59, reflecting a 16x multiple on our updated 2025 EPS estimate of $3.69 (up from $3.63; 2026 estimate now $4.13, up from $4.12), compared to the long-term average of 19x. Q1 results came in below expectations, but shares are rising on optimism that the worst may be behind the company. January and February were particularly weak for the broader foodservice industry, primarily due to adverse weather. While restaurant foot traffic remains challenged, as it has for the past year, it was encouraging to hear that traffic has improved since February, with positive momentum continuing into early May. Additionally, USFD continues to gain new customers, highlighting April as its strongest month for new customer and account acquisition so far this year. That said, we still see downside risk to the outlook and consensus estimates, as both may not fully reflect declining consume sentiment and softer expected consumer discretionary spending. We maintain our Sell rating."

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