Morgan Stanley Raises Price Target for US Foods Holding to $89, Upside of 4.66%

Morgan Stanley has raised the price target for US Foods Holding (USFD) to $89 from $84, representing a 5.95% increase. The analyst maintains a "Overweight" rating, citing the company's continued positive outlook and growth potential. The average target price from 15 analysts is $85.41, with a high estimate of $95 and a low estimate of $77. The average brokerage recommendation is 1.9, indicating an "Outperform" status.

Morgan Stanley has boosted the price target for US Foods Holding (USFD) to $89, a 5.95% increase from its previous target of $84. The analyst maintains an "Overweight" rating, reflecting a positive outlook on the company's growth potential [1].

The move comes as part of a broader trend among analysts. Over the past three months, 15 analysts have evaluated USFD, with an average target price of $85.41, ranging from $77 to $95. The consensus rating among these analysts is "Buy," with a brokerage recommendation average of 1.9, indicating an "Outperform" status [2].

US Foods Holding, a leading food service distributor, has shown positive financial performance. In the most recent quarter, the company reported earnings per share (EPS) of $0.68, slightly missing analysts' consensus estimates of $0.69. However, the company's revenue grew by 4.5% year-over-year, reaching $9.35 billion [1].

The company's strong market position is further underscored by its market capitalization, which is above the industry average, and its net margin of 1.23%, exceeding industry standards. Additionally, institutional investors hold 98.76% of USFD's stock, reflecting confidence in the company's prospects [1].

Despite the positive outlook, it is essential to consider the company's debt-to-equity ratio of 1.02 and its return on equity (ROE) of 15.58%, which is below industry standards. These factors should be taken into account when evaluating USFD's long-term investment potential [1].

In summary, Morgan Stanley's raised price target for USFD reflects a positive consensus among analysts regarding the company's growth prospects. However, investors should carefully consider the company's financial health and the broader market conditions before making investment decisions.

References:
[1] https://www.marketbeat.com/instant-alerts/us-foods-nyseusfd-price-target-raised-to-8900-at-morgan-stanley-2025-07-14/
[2] https://www.nasdaq.com/articles/demystifying-us-foods-hldg-insights-8-analyst-reviews