The Chefs’ Warehouse, Inc. (CHEF) has acquired all the assets of Silver State Meats to accomplish its goal of becoming the premier distributor partner for the best chefs in Las Vegas and building a team of specialty protein companies.
The financial terms of the deal have been kept under wraps. Shares of the premier distributor of specialty food products in the United States and Canada have gained 121% over the past year. (See Chefs’ Warehouse stock charts on TipRanks)
Founded in 2012, Silver State Meats is the leading high-quality meat, chicken, and pork distributor in Las Vegas. Upon completion, Silver State Meats is forecast to generate annual net sales of approximately $20 million.
The Chefs’ Warehouse CEO Christopher Pappas commented, “This acquisition offers The Chefs’ Warehouse the opportunity to continue to build our all-star team of specialty protein companies that complement our core cultural values.”
Wolfe Research analyst Greg Badishkanian initiated coverage on The Chefs’ Warehouse with a Buy rating and a price target of $38 (15.1% upside potential).
Badishkanian has a positive stance on the stock based on his expectations of normalization in consumer behavior post the pandemic, the scope for pent-up demand, as well as the accelerating M&A space.
Consensus among analysts is a Strong Buy based on 3 unanimous Buys. The average Chefs’ Warehouse price target of $39.33 implies 19.1% upside potential to current levels.
CHEF scores an 8 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
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