JPMorgan Chase & Co. Issues Pessimistic Forecast for Sysco (NYSE:SYY) Stock Price

Key Points

• JPMorgan lowered its Sysco price target from $95 to $92, while its revised target still implies about 20% upside from the reported share price of $76.58.
• Analyst sentiment remains broadly positive: Sysco has a “Moderate Buy” consensus rating and an average price target of $91.33, though ratings range from buy to sell.
• Sysco reported quarterly EPS of $1.19, matching estimates and up from $1.15 a year earlier; revenue rose 2.8% year over year to $21.74 billion but missed the $22.02 billion consensus.

Sysco (NYSE:SYY - Get Free Report) had its price objective lowered by stock analysts at JPMorgan Chase & Co. from $95.00 to $92.00 in a research note issued on Wednesday. JPMorgan Chase & Co.'s price target indicates a potential upside of 20.14% from the company's current price.

Several other equities research analysts also recently issued reports on the stock. Citigroup restated a "neutral" rating on shares of Sysco in a research report on Monday, October 26th. Morgan Stanley upped their target price on Sysco from $88.00 to $91.00 and gave the company an "equal weight" rating in a research report on Thursday, October 15th. Guggenheim reissued a "buy" rating and set a $90.00 price target on shares of Sysco in a report on Wednesday, September 16th. Weiss Ratings downgraded Sysco from a "buy (b)" rating to a "buy (b-)" rating in a research note on Tuesday. Finally, Melius Research lowered Sysco from a "hold" rating to a "sell" rating in a report on Tuesday, July 7th. Eleven analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Sysco currently has an average rating of "Moderate Buy" and a consensus price target of $91.33.

Sysco Stock Performance

SYY traded up $2.47 during trading hours on Wednesday, reaching $76.58. The company's stock had a trading volume of 2,537,829 shares, compared to its average volume of 4,010,545. Sysco has a 52 week low of $68.19 and a 52 week high of $91.85. The company's 50-day moving average is $80.30 and its 200-day moving average is $80.52. The company has a debt-to-equity ratio of 4.62, a quick ratio of 0.77 and a current ratio of 1.28. The firm has a market cap of $37.67 billion, a PE ratio of 20.92, a price-to-earnings-growth ratio of 2.30 and a beta of 0.66.

Sysco (NYSE:SYY - Get Free Report) last announced its quarterly earnings results on Tuesday, November 3rd. The company reported $1.19 earnings per share (EPS) for the quarter, meeting the consensus estimate of $1.19. Sysco had a return on equity of 95.05% and a net margin of 2.08%. The business had revenue of $21.74 billion during the quarter, compared to the consensus estimate of $22.02 billion. During the same quarter last year, the firm posted $1.15 EPS. The company's quarterly revenue was up 2.8% on a year-over-year basis. On average, equities analysts forecast that Sysco will post 5.09 EPS for the current year.

Insider Buying and Selling

In other Sysco news, EVP Ronald Phillips sold 7,350 shares of Sysco stock in a transaction on Friday, August 21st. The stock was sold at an average price of $83.61, for a total value of $614,533.50. Following the completion of the transaction, the executive vice president directly owned 38,650 shares of the company's stock, valued at $3,231,526.50. The trade was a 15.98% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders sold 15,525 shares of company stock worth $1,299,736. 0.55% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of SYY. United Capital Financial Advisors LLC purchased a new stake in shares of Sysco during the second quarter valued at approximately $2,633,000. Rakuten Investment Management Inc. purchased a new position in shares of Sysco in the second quarter worth $6,523,000. Empowered Funds LLC bought a new stake in Sysco during the 2nd quarter valued at $9,370,000. Bank of America Corp DE purchased a new stake in Sysco during the 2nd quarter valued at $482,589,000. Finally, First Nebraska Trust Co purchased a new stake in Sysco during the 2nd quarter valued at $183,604,000. Institutional investors and hedge funds own 83.41% of the company's stock.

Sysco News Summary

Here are the key news stories impacting Sysco this week:

• Positive Sentiment: Sysco reported adjusted EPS of $1.19, up from $1.15 a year earlier, and reaffirmed its fiscal 2027 adjusted EPS growth outlook of 9%–11%. Local case volume rose 2.7%, while margin gains helped support earnings. Sysco Q1 results
• Positive Sentiment: Management said its AI transformation program is aimed at generating $100 million in savings in fiscal 2027, offering a potential efficiency and margin tailwind if delivered. Sysco: 3 Key Takeaways for Long-Term Investors
• Neutral Sentiment: Sysco named longtime company executive Brandon Sewell its CFO after he served as interim CFO. The appointment provides leadership continuity, though it was not a major change to the operating outlook. Sysco names Brandon Sewell CFO
• Negative Sentiment: Quarterly revenue of $21.74 billion fell short of the $22.02 billion analyst estimate, despite increasing 2.8% year over year. Reports also pointed to softer sales guidance and a cyclosporiasis outbreak that hurt first-quarter sales, adding to investor concerns about near-term growth. Reuters: Outbreak hit Q1 sales
• Negative Sentiment: Sysco’s planned $29.1 billion acquisition has raised concerns about deal-related costs and execution, which may have contributed to the market’s cautious reaction alongside the sales miss. Sysco under pressure on acquisition costs and sales guidance

Sysco Company Profile

Sysco Corporation is a global foodservice distribution company headquartered in Houston, Texas. It supplies food and related products to restaurants, healthcare and educational institutions, hotels, government facilities, and other foodservice operators.

The company distributes a broad range of products, including fresh and frozen foods, meat and seafood, produce, dairy products, canned and packaged goods, beverages, and specialty food items. Sysco also provides nonfood products such as kitchen and dining supplies, equipment, and cleaning products, along with services intended to help customers manage menus, procurement, and operations.

Founded in 1969, Sysco serves customers primarily across the United States and Canada, as well as in parts of Europe and other international markets.

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