Bob Karr
2 min read
In This Article:
On May 23, analysts at Citi initiated coverage on Performance Food Group Company (NYSE:PFGC)’s stock, giving it a “Buy” rating and a price objective of $121.00.
The initiation stems from the detailed analysis, exhibiting that the broader market might not be fully recognizing the favourable impacts of ongoing mix shifts in the company’s operations.
A friendly grocery store team stocking shelves with foodservice products.
Performance Food Group Company (NYSE:PFGC)’s Convenience segment continues to witness beneficial changes, which include a decline in sales of low-margin nicotine products, softness in the lower-margin single-serve packaged food sales, and a strong improvement in higher-margin foodservice sales.
The analyst hinted at Performance Food Group Company (NYSE:PFGC)’s long-term sales opportunities related to the foodservice offered to convenience stores. As per the analyst, an increase in the value gap between convenience stores and traditional fast-food outlets, mainly because of the less labour-intensive model, continues to support the convenience stores category.
Also, the analyst remains optimistic about Performance Food Group Company (NYSE:PFGC)’s potential for M&As, considering its smaller size and regional footprint. This can result in additional opportunities for strong growth. Overall, the company’s capability to reap the benefits from evolving market dynamics, mainly in foodservice and convenience sectors, can act as a driving force for its financial performance.
Performance Food Group Company (NYSE:PFGC) is engaged in the marketing and distribution of food and food-related products.
While we acknowledge the potential of PFGC to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PFGC and that has 100x upside potential, check out our report about this cheapest AI stock.
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Disclosure: None.
