CHEF - Chefs' Warehouse attracts higher estimates from BMO Capital with sales momentum strong

BMO Capital turned more constructive on Chefs' Warehouse ( NASDAQ: CHEF ) with 2022 results seen coming in ahead of plan.

Analyst Kelly Bania and team raised estimates on CHEF following the food supplier's guidance hike at the end of June.

"CHEF's increased sales are supporting more profitable business than previously estimated, which we feel is important support for our longer-term view that CHEF should be valued off its longer-term profitability potential," updated Bania.

BMO Capital reiterated an Outperform rating on CHEF and raised the target price to $48, which is still only 12X to 13X the EV/EBITDA estimate.

The Seeking Alpha Quant Rating on CHEF is flashing Strong Buy.

Shares of Chefs' Warehouse ( CHEF ) tracked 1.51% higher in premarket trading on Thursday to $39.75.

Dig further into CHEF's new financial guidance for FY22.

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