US Foods (NYSE:USFD) Given New $124.00 Price Target at Citigroup

Key Points

• Citigroup raised its US Foods price target to $124 from $110 and maintained a “buy” rating, implying 13.78% upside. The stock has a “Moderate Buy” consensus rating and an average target of $112.38.
• US Foods reported a quarterly earnings and revenue beat, with EPS of $1.44 versus the $1.36 estimate and revenue of $10.53 billion. Revenue increased 4.5% year over year, while adjusted EBITDA rose 10.2% to a record $604 million.
• The company reaffirmed fiscal 2026 adjusted EPS guidance of $4.696-$4.935, above the $4.620 consensus, while investor concerns include its elevated valuation and recent insider selling.

US Foods (NYSE:USFD - Get Free Report) had its target price lifted by equities researchers at Citigroup from $110.00 to $124.00 in a research report issued on Friday,Benzinga reports. The brokerage presently has a "buy" rating on the stock. Citigroup's price target suggests a potential upside of 13.78% from the company's current price.

Other analysts have also issued reports about the stock. UBS Group reiterated a "buy" rating and set a $127.00 price target on shares of US Foods in a research note on Friday. BTIG Research raised their price objective on shares of US Foods from $105.00 to $120.00 and gave the company a "buy" rating in a research note on Friday. Wall Street Zen cut shares of US Foods from a "buy" rating to a "hold" rating in a report on Saturday, May 9th. Zacks Research raised shares of US Foods from a "strong sell" rating to a "hold" rating in a research note on Tuesday, July 28th. Finally, Morgan Stanley set a $107.00 target price on shares of US Foods in a report on Friday. Eleven research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $112.38.

US Foods Trading Up 1.9%

Shares of NYSE USFD traded up $2.01 during trading on Friday, reaching $108.98. The stock had a trading volume of 2,415,293 shares, compared to its average volume of 2,742,988. US Foods has a fifty-two week low of $69.88 and a fifty-two week high of $110.08. The company has a debt-to-equity ratio of 1.16, a quick ratio of 0.70 and a current ratio of 1.14. The business's 50-day moving average price is $95.88 and its 200-day moving average price is $91.82. The company has a market cap of $24.00 billion, a P/E ratio of 36.69, a PEG ratio of 1.28 and a beta of 0.81.

US Foods (NYSE:USFD - Get Free Report) last posted its earnings results on Thursday, August 6th. The company reported $1.44 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.36 by $0.08. US Foods had a return on equity of 19.37% and a net margin of 1.71%.The firm had revenue of $10.53 billion for the quarter, compared to analyst estimates of $10.46 billion. During the same quarter in the prior year, the company earned $1.19 EPS. US Foods's revenue was up 4.5% on a year-over-year basis. US Foods has set its FY 2026 guidance at 4.696-4.935 EPS. On average, equities research analysts predict that US Foods will post 4.35 EPS for the current fiscal year.

Hedge Funds Weigh In On US Foods

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. BlackRock Inc. purchased a new stake in shares of US Foods in the 2nd quarter valued at approximately $2,131,439,000. Price T Rowe Associates Inc. MD raised its holdings in shares of US Foods by 412.9% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 4,165,611 shares of the company's stock valued at $313,755,000 after purchasing an additional 3,353,396 shares in the last quarter. Bank of Montreal Can lifted its position in shares of US Foods by 8,056.1% during the 4th quarter. Bank of Montreal Can now owns 2,866,721 shares of the company's stock worth $215,921,000 after purchasing an additional 2,831,573 shares during the last quarter. Norges Bank purchased a new stake in shares of US Foods during the 4th quarter worth $192,849,000. Finally, Wellington Management Group LLP grew its stake in shares of US Foods by 14.2% during the third quarter. Wellington Management Group LLP now owns 12,875,970 shares of the company's stock worth $986,557,000 after purchasing an additional 1,599,033 shares in the last quarter. 98.76% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting US Foods

Here are the key news stories impacting US Foods this week:

• Positive Sentiment: Q2 earnings and sales beat expectations. US Foods reported adjusted EPS of $1.44 versus the $1.36 consensus and revenue of $10.53 billion versus expectations of $10.46 billion. Revenue rose 4.5% year over year, while adjusted EBITDA increased 10.2% to a record $604 million. US Foods Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Volume growth and profitability trends were encouraging. Total case volume rose 1.9%, including a 5.1% increase in independent-restaurant volume, suggesting market-share gains. Net income increased 22.8% to $275 million, and adjusted EPS grew 21% from the prior year. US Foods Q2 Net Income Rises
• Positive Sentiment: Full-year guidance was reaffirmed at levels above consensus. US Foods maintained its fiscal 2026 adjusted EPS outlook of $4.696-$4.935, compared with the $4.620 consensus, and forecast revenue of $41.0-$41.8 billion. The company also repurchased $374 million of stock during the quarter. US Foods Rallies After Solid Earnings and Guidance Update
• Positive Sentiment: Analysts raised their targets and ratings. Wells Fargo lifted its target from $110 to $125 and assigned an “overweight” rating. BTIG raised its target from $105 to $120 and upgraded its stance to “buy,” reinforcing the bullish reaction to the earnings release. Analyst Price Target Updates
• Neutral Sentiment: Valuation is becoming a concern. One analysis argues that USFD may be expensive after its substantial five-year gain, potentially making the stock more sensitive to any slowdown in earnings or margin growth. US Foods Stock May Be Pricey Despite Five-Year Return
• Negative Sentiment: Recent insider activity has been exclusively selling. Disclosed transactions show executives sold shares during the past six months without reported open-market purchases, a modestly negative signal that may temper investor enthusiasm.

About US Foods

US Foods NYSE: USFD is a leading foodservice distributor in the United States that supplies a wide range of products and services to professional food operators. The company provides fresh, frozen and dry food items as well as non-food restaurant supplies and kitchen equipment. Its customer base includes independent restaurants, multi-unit chains, healthcare and senior living facilities, hospitality businesses, government and educational institutions, and other foodservice operators.

Beyond commodity and branded food products, US Foods offers value-added solutions designed to help customers run their businesses.

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