Analysts have modestly increased their price target for Performance Food Group to approximately $120.92, citing robust Q4 earnings results, accelerating market share gains, and expectations for continued independent case growth to support EBITDA expansion.

Analyst Commentary

Recent street research on Performance Food Group highlights a series of bullish adjustments and positive sentiment. The consensus among analysts points to strong fundamentals, strategic execution, and continued growth opportunities. Key takeaways include:

• Bullish analysts have raised price targets, with several now above $115, reflecting confidence in the company's growth trajectory and market share gains.
• Performance Food Group's Q4 results exceeded expectations, with both top-line and bottom-line beats driving upward revisions to future earnings estimates.
• Independent case growth is expected to outpace peers, supported by a focused salesforce and decentralized structure that is helping to win and retain customers.
• Improved industry demand and robust share gains position Performance Food Group as a standout performer within its sector. This supports expectations for further EBITDA growth and valuation expansion in the near to medium term.

• While deal probability with competitors has declined, it is not considered entirely off the table. This presents some uncertainty for future consolidation in the industry.
• Analysts note the broader macro environment remains choppy, which may present challenges for sustaining current growth rates in the coming quarters.
• Elevated valuations following strong recent performance could limit upside if anticipated growth or margin expansion does not materialize as expected.

What's in the News

• Entered into a Cooperation Agreement with Sachem Head Capital Management. This resulted in the appointment of Scott D. Ferguson to the Board of Directors and the Audit and Finance Committee, as well as the withdrawal of Sachem Head's board nominations and business proposal (Key Developments).
• Signed a clean team agreement with US Foods Holding Corp. to begin confidential information sharing, exploring potential business combination synergies. There is no guarantee of a transaction (Key Developments).
• Provided fiscal 2026 guidance, projecting first quarter net sales between $16.6 billion and $16.9 billion, and full year net sales between $67 billion and $68 billion (Key Developments).
• Continued focus on disciplined M&A, emphasizing a robust acquisition pipeline and a balanced capital allocation strategy to drive growth and shareholder value (Key Developments).
• Completed additional share repurchases totaling over $13 million during the second quarter of 2025 as part of an ongoing buyback program (Key Developments).

Valuation Changes

• The consensus analyst price target has risen slightly, increasing from $120.75 to $120.92 per share.
• The discount rate has decreased modestly, moving from 7.61% to 7.58%.
• The revenue growth projection has edged higher, rising from 7.46% to 7.48%.
• The net profit margin has declined marginally, shifting from 1.23% to 1.23%.
• The future P/E multiple has increased slightly, rising from 25.92x to 25.95x.