Piper Sandler lowered the firm's price target on US Foods to $88 from $103 and keeps an Overweight rating on the shares. Following a post Q1 earnings and 10-Q review, the firm is updating its model on US Foods. Relative to its prior estimates, Piper's organic case growth estimates have been reduced over the forecasted time period, primarily as a function of the continued lackluster traffic environment that can be observed across the chain restaurant industry. In its long-term valuation framework, the firm has increased its discount rate assumption modestly, to better align with how it currently values US Foods' Food Distribution peers.
