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$SYY

9 stories mentioning SYYUpdated 2d ago

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Wire

Sysco's Stock Upside Opportunity Outweighs Risk, UBS Says

Sysco's (SYY) stock upside opportunity outweighs its risk at current levels, with plenty of focus to be on its ability to achieve strong earnings per share growth, along with developments in its acquisition of Restaurant Depot, UBS said in a note emailed Wednesday.The brokerage said the company showed that it is enhancing its foodservice distribution consistency, even if a slightly weaker-than-expected local case growth performance held back its shares post results.UBS also said the company is seeing productivity step changes across its sales force, helped by improved retention and good uptake of its AI 360 selling tool.UBS said the company expanded to its cost-out initiatives as it leans on tech and AI, which could help Sysco in $100 million total cost saves.UBS maintained a buy rating and raised price target to $95 from $90.Price: $84.89, Change: $+2.10, Percent Change: +2.54%

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Wire

Restaurant Sector Remains Mixed as Stronger Operators Outperform, Morgan Stanley Says

Restaurant and food companies continue to see mixed performance, as stronger operators outperform while weaker brands face ongoing challenges, Morgan Stanley said in a note Wednesday.Recent market shifts, including artificial intelligence and uncertainty around Iran, have led investors to better differentiate between companies still delivering and those that are not, the investment bank said, adding it does not expect any major near-term macroeconomic changes that would improve conditions for challenged brands.Across the industry, large quick-service restaurants remain a weak segment, while beverage companies continue to perform strongly, and fast-casual restaurants are mixed but showing modest improvement, according to the note. Full-service restaurants are also mixed but remain solid overall, and food distributors continue to demonstrate resilience, the investment bank said."Recent slowing in industry data will be a focus, though perhaps short lived and comparisons help as we head into late Q3/Q4 for many and the overall industry," the bank added.Morgan Stanley raised its price target on Starbucks (SBUX) to $111 from $110, Restaurant Brands International (QSR) to $79 from $78, CAVA Group (CAVA) to $90 from $86, and Dutch Bros (BROS) to $88 from $87, while lowering its price target on Domino's Pizza (DPZ) to $370 from $395, and McDonald's (MCD) to $322 from $331.The bank downgraded Black Rock Coffee Bar (BRCB) to equal-weight from overweight and cut its price target to $9 from $22, while upgrading CAVA Group (CAVA) to overweight from equal-weight and raising the price target to $90 from $86. Morgan Stanley downgraded Chefs' Warehouse (CHEF) to equal-weight from overweight while raising its price target to $97 from $83.The bank also increased its price targets on Performance Food Group (PFGC) to $131 from $120, Sysco (SYY) to $88 from $84, and US Foods (USFD) to $103 from $94.Price: $106.99, Change: $+0.82, Percent Change: +0.78%

$BRCB$BROS$CAVA$CHEF$DPZ$MCD$PFGC$QSR$SBUX$SYY$USFD
Wire

Deutsche Bank Adjusts Sysco Price Target to $86 From $84

Sysco (SYY) has an average rating of overweight and mean price target of $86.36, according to analysts polled by FactSet.Price: $83.48, Change: $+0.33, Percent Change: +0.40%

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Research

Research Alert: CFRA Keeps Hold Opinion On Shares Of Sysco Corporation

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We raise our 12-month target by $1 to $85, on 17x our FY 27 (Jun.) EPS estimate and in line with the company's three-year average forward P/E. We raise our FY 26 estimate to $4.63 from $4.58 and FY 27's to $5.03 from $4.96. Following Q3 FY 26 results that showed improving U.S. case volume growth of +2.3%, we reiterate our Hold view. SYY saw improved gross margins of 18.6% (+30 bps Y/Y), driven by an acceleration in higher-margin U.S. local case volume growth of +3.3%. However, our optimism is balanced by the potential for the Restaurant Depot acquisition to increase leverage, which management expects will push leverage to 4.5x. The deal includes a suspension of SYY's share buyback plan as well as planned equity issuance. While the acquisition is compelling from a total addressable market and margin standpoint, expanding SYY's presence in the independent restaurant segment, we believe the size of the deal comes with integration risks that could pressure near-term profitability and limit financial flexibility.

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Wire

Sysco Extends Q3 Momentum, Calms Restaurant Depot Concerns, UBS Says

Sysco's (SYY) momentum in fiscal Q3 remained intact as the company pushed back on concerns that its pending Jetro Restaurant Depot acquisition would require a costly overhaul, UBS Securities said Wednesday in a report.UBS said Sysco continued to post steady operational gains in the period, including its strongest US growth in case shipments to independent restaurants since Q3 2023. Questions around Restaurant Depot's condition may linger, though Sysco's third-party inspections of more than 160 stores helped ease investor concerns, the report said.International results also improved, and UBS expects that business to keep benefiting from supply-chain and private-label investments. Still, higher energy costs in Europe could pressure consumers if the Middle East conflict drags on, the report said.UBS maintained its buy rating on Sysco stock with a price target of $90.Price: $73.79, Change: $+0.42, Percent Change: +0.57%

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Wire

Morgan Stanley Adjusts Price Target on Sysco to $84 From $86, Maintains Equalweight Rating

Sysco (SYY) has an average rating of overweight and mean price target of $86.36, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://finwires.com/en/contact)Price: $73.67, Change: $+0.30, Percent Change: +0.41%

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Research

Deutsche Bank Downgrades Sysco to Hold From Buy, Adjusts Price Target to $84 From $90

Sysco (SYY) has an average rating of overweight and mean price target of $86.21, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://finwires.com/en/contact)

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Research

Research Alert: Syy: Volume Acceleration And Gross Margin Expansion Offset By Expense Pressure

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:SYY reported FQ3 adjusted EPS of $0.94 (-2.0% Y/Y), in line with consensus, while revenue of $20.5B (+4.7% Y/Y) was modestly below the $20.6B estimate. U.S. Foodservice case volumes grew 2.3% Y/Y with local volumes accelerating to 3.3%, validating sales force investments despite industry headwinds. We view the volume performance as encouraging and believe it supports SYY's market leadership position. Management maintained full-year FY26 adjusted EPS guidance of $4.50-$4.60, suggesting confidence in Q4 acceleration. Gross margin expanded to 18.6% (+30 bps Y/Y) despite 2.8% product cost inflation, demonstrating effective pricing discipline. However, operating margin compressed to 3.7% (-20 bps Y/Y) due to elevated operating expenses (+8.4% Y/Y), particularly International Foodservice (+15% Y/Y). We believe SYY's Recipe for Growth strategy and diversified customer base position the company well, though moderating expense growth will be key to margin recovery.

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Wire

BofA Adjusts Price Target on Sysco to $91 From $102

Sysco (SYY) has an average rating of overweight and mean price target of $87.57, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://finwires.com/en/contact)Price: $76.19, Change: $+0.38, Percent Change: +0.50%

$SYY

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