US Foods upgraded to Overweight from Neutral at Piper Sandler

Piper Sandler upgraded US Foods to Overweight from Neutral with a price target of $59, up from $45, following the company’s Q4 earnings results. The firm sees a relatively clear path for the stock to hit the “high $50’s/low $60’s” levels over the course of the next 12 months, with its formal price target representing about 19% upside from here. Absent a U.S. recession scenario playing out, Piper has a high degree of conviction in the upside case for US Foods’ shares on an absolute basis; and even in the opposite case, the firm would expect it to outperform the large majority of our U.S. Restaurant Industry coverage on a relative basis, most notably the Full-Service Owner Operators.