US Foods stock price target raised to $87 from $80 at Wells Fargo

Wells Fargo and Truist Securities have both raised their price targets on US Foods (USFD) to $87 and $90 respectively, maintaining positive ratings, after the company reported a Q2 2025 adjusted EPS beat of $1.19 despite a revenue miss of $10.08 billion. Analysts cited USFD's strong adjusted EBITDA guidance raise, its role as a consolidator in a fragmented industry, aggressive share buybacks, and anticipated 20% EPS growth as key drivers. Despite recent stock weakness reflecting varied investor reactions to the mixed Q2 performance, the firm is viewed as an attractive, defensive growth option in the consumer sector.

Analysis

Major investment banks are signaling a bullish outlook on US Foods (USFD), with Wells Fargo raising its price target to $87 and Truist Securities to $90, both maintaining buy-equivalent ratings. This optimism persists despite a mixed second-quarter 2025 earnings report, where the company's adjusted EPS of $1.19 surpassed the $1.13 consensus, but revenue of $10.08 billion fell short of the $10.19 billion forecast. The key driver for the positive revisions is US Foods' raised full-year adjusted EBITDA guidance, which indicates strong operational efficiency and margin improvement that more than compensates for the top-line miss. Analysts highlight the company's strategic position as a consolidator in a fragmented industry, supported by an aggressive share repurchase program and a healthy current ratio of 1.17. Wells Fargo projects industry-leading EPS growth of approximately 20% and notes its new price target implies a 12x multiple on 2026 EBITDA estimates, viewing the stock's recent decline as a buying opportunity. The potential for a value-enhancing deal with Performance Food Group is also cited as an additional, though speculative, upside catalyst.

Key Decisions for Investors

• Consider the bullish analyst consensus from Wells Fargo and Truist, who raised price targets to $87 and $90 respectively, framing the recent stock weakness as a compelling entry point.
• Focus on the fundamental drivers underpinning the positive outlook, namely the projected 20% EPS growth, an aggressive share buyback program, and improved profitability signaled by the raised adjusted EBITDA guidance, which currently outweighs the concern from the Q2 revenue miss.
• Monitor future revenue reports to confirm the top-line weakness is not a persistent trend and watch for any developments regarding a potential deal with Performance Food Group, which is cited as a significant potential upside catalyst.