CFRA raised its 12-month price target on US Foods Holding (NYSE:USFD) to $59 from $58 following the company’s Q1 earnings release, but maintained its Sell rating, citing lingering risks tied to consumer sentiment and spending trends.
The new price target is based on a 16x multiple applied to CFRA’s updated 2025 earnings estimate of $3.69, up modestly from $3.63. The 2026 estimate was also slightly raised to $4.13 from $4.12. Despite the small upward revisions, the valuation remains below the company’s historical average of 19x earnings.
US Foods’ first-quarter results came in below expectations, but shares gained as investors looked past early-year weakness—largely attributed to poor weather in January and February—and focused on signs of improving industry trends.
The analysts acknowledged encouraging signs, including a rebound in restaurant traffic since February and a strong April for new customer acquisition. However, CFRA remains cautious, warning that consensus estimates may not fully capture the potential impact of declining consumer sentiment and reduced discretionary spending, which could weigh on future performance.