US Foods Holding Corp (USFD) Receives “Buy” Rating from Wells Fargo & Company
“We reiterate our Outperform rating, and continue to see favorable risk/reward with long-term opportunities intact and shares trading at a -16% valuation gap vs. SYY. Q4 caps a strong FY16. USFD wrapped up its first FY as a newly public company with a strong FY16 and Q4 results that largely matched USFD’s preannounced results on January 13 th . Highlights include: 1) FY16 Adjusted EBITDA growth of +11%, or +12.5% normalized for a 53 rd week in FY15; 2) Accelerating Q4 independent case growth of +6.1%, with an organic contribution of +3.8% suggesting underlying trends (on a 2-year basis) improved +60bps; 3) Annual gross margin improvement of +60bps owing to improved customer mix (more independents, fewer chains), merchandising/procurement initiatives and pricing benefits from deflation; and 4) FY16 gross profit dollar growth exceeding operating expense growth by 180bps. Looking ahead to FY17, we anticipate this spread to widen to +300bps as gross margin drivers continue and the benefits from recent field reorganization and restructuring initiatives are expected to drive +25bps of Adj. EBITDA margin improvement.”,” the firm’s analyst wrote.
Several other equities analysts have also commented on the stock. Zacks Investment Research lowered shares of US Foods Holding Corp from a buy rating to a hold rating in a research report on Wednesday, January 11th. RBC Capital Markets started coverage on shares of US Foods Holding Corp in a research report on Tuesday, January 24th. They set an outperform rating and a $32.00 price target for the company. Guggenheim upped their price target on shares of US Foods Holding Corp from $28.00 to $30.00 and gave the stock a buy rating in a research report on Monday, January 30th. Goldman Sachs Group, Inc. (The) upgraded shares of US Foods Holding Corp from a neutral rating to a buy rating and set a $31.00 target price for the company in a research report on Friday, December 9th. Finally, BMO Capital Markets reiterated a hold rating on shares of US Foods Holding Corp in a research report on Wednesday, November 9th. Three research analysts have rated the stock with a hold rating and ten have given a buy rating to the company. The stock currently has an average rating of Buy and an average target price of $28.15.
Shares of US Foods Holding Corp (NASDAQ:USFD) traded down 0.92% during trading on Wednesday, reaching $26.95. 1,440,499 shares of the company’s stock were exchanged. US Foods Holding Corp has a 52 week low of $22.19 and a 52 week high of $27.86. The company’s 50-day moving average price is $26.90 and its 200 day moving average price is $24.64. The firm has a market capitalization of $5.95 billion and a PE ratio of 41.98.
US Foods Holding Corp (NASDAQ:USFD) last released its quarterly earnings results on Wednesday, February 15th. The company reported $0.53 EPS for the quarter, topping the consensus estimate of $0.43 by $0.10. The firm had revenue of $5.66 billion for the quarter, compared to the consensus estimate of $5.68 billion. The business’s quarterly revenue was down 4.3% compared to the same quarter last year. Analysts predict that US Foods Holding Corp will post $1.51 EPS for the current fiscal year.
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In other news, major shareholder Dubilier & Rice Fund V. Clayton sold 20,700,000 shares of the firm’s stock in a transaction dated Tuesday, January 31st. The shares were sold at an average price of $26.00, for a total transaction of $538,200,000.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website.
A number of hedge funds have recently bought and sold shares of USFD. Prudential Financial Inc. raised its stake in US Foods Holding Corp by 162.2% in the third quarter. Prudential Financial Inc. now owns 194,647 shares of the company’s stock worth $4,596,000 after buying an additional 120,400 shares in the last quarter. BlackRock Group LTD raised its stake in US Foods Holding Corp by 1,089.4% in the third quarter. BlackRock Group LTD now owns 535,053 shares of the company’s stock worth $12,632,000 after buying an additional 490,067 shares in the last quarter. Canyon Capital Advisors LLC purchased a new stake in US Foods Holding Corp during the second quarter worth approximately $17,704,000. Artal Group S.A. purchased a new stake in US Foods Holding Corp during the second quarter worth approximately $12,120,000. Finally, Quantitative Systematic Strategies LLC raised its stake in US Foods Holding Corp by 544.2% in the third quarter. Quantitative Systematic Strategies LLC now owns 61,640 shares of the company’s stock worth $1,444,000 after buying an additional 52,071 shares in the last quarter.
About US Foods Holding Corp
US Foods Holding Corp. is a holding company. The Company is a foodservice distributor in the United States. It conducts all of its operations through its subsidiary, US Foods, Inc It markets and distributes fresh, frozen and dry food and non-food products to foodservice customers throughout the United States.
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