US Foods price target raised to $50 from $46 at JPMorgan

JPMorgan analyst John Ivankoe raised the firm’s price target on US Foods to $50 from $46 and keeps a Neutral rating on the shares. The firm says casual dining stocks are “showing more divergence,” and it now prefers Darden Restaurants (DRI) and Brinker International (EAT) over Bloomin’ Brands (BLMN) and Texas Roadhouse (TXRH). JPMorgan also recommends using Cheesecake Factory (CAKE) “as source of funds.” Some debate exists around the impact on recent changes in effective industry supply growth the past several years but the segment defining, value-oriented operators seem positioned to take long term share, the analyst tells investors in a research note. JPMorgan says much of its restaurant and foodservice distribution coverage sets up as a “soft landing special” – meaning a sales and cost environment set-up that can be taken advantage of by many well positioned and well-funded brands.