Sysco (NYSE:SYY) Stock Gets Price Target Reduction from Citigroup

Key Points

• Citigroup cut Sysco’s price target from $87 to $84 and maintained a neutral rating; the revised target implied 11.79% upside from the prior close.
• Analyst sentiment remained broadly positive: Sysco had a “Moderate Buy” consensus rating and an average price target of $91.13, with 11 Buy, six Hold, and one Sell rating.
• Sysco reported quarterly EPS of $1.19, in line with expectations, while revenue of $21.74 billion fell short of estimates; revenue was up 2.8% year over year.

Sysco (NYSE:SYY - Get Free Report) had its price objective cut by investment analysts at Citigroup from $87.00 to $84.00 in a research report issued on Thursday, Benzinga reports. The firm currently has a "neutral" rating on the stock. Citigroup's price objective would suggest a potential upside of 11.79% from the company's previous close.

A number of other analysts also recently issued reports on SYY. UBS Group lifted their price objective on shares of Sysco from $90.00 to $95.00 and gave the stock a "buy" rating in a report on Wednesday, August 5th. Weiss Ratings downgraded shares of Sysco from a "buy (b)" rating to a "buy (b-)" rating in a research note on Tuesday. JPMorgan Chase & Co. decreased their price objective on shares of Sysco from $95.00 to $92.00 in a report on Wednesday. Sanford C. Bernstein restated a "market perform" rating on shares of Sysco in a research report on Wednesday. Finally, Morgan Stanley upped their price objective on Sysco from $88.00 to $91.00 and gave the stock an "equal weight" rating in a research note on Thursday, October 15th. Eleven equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $91.13.

Sysco Stock Performance

Shares of NYSE:SYY traded down $1.80 during midday trading on Thursday, reaching $75.14. 4,722,266 shares of the company traded hands, compared to its average volume of 4,032,702. Sysco has a 12 month low of $68.19 and a 12 month high of $91.85. The firm has a market capitalization of $36.96 billion, a price-to-earnings ratio of 19.98, a price-to-earnings-growth ratio of 2.08 and a beta of 0.66. The company has a quick ratio of 0.77, a current ratio of 1.46 and a debt-to-equity ratio of 3.18. The firm's fifty day moving average price is $80.17 and its two-hundred day moving average price is $80.51.

Sysco (NYSE:SYY - Get Free Report) last released its quarterly earnings data on Tuesday, November 3rd. The company reported $1.19 EPS for the quarter, meeting analysts' consensus estimates of $1.19. Sysco had a net margin of 2.12% and a return on equity of 79.24%. The company had revenue of $21.74 billion during the quarter, compared to analyst estimates of $22.02 billion. During the same period last year, the business earned $1.15 earnings per share. Sysco's revenue was up 2.8% compared to the same quarter last year. On average, equities analysts expect that Sysco will post 5.09 earnings per share for the current year.

Insiders Place Their Bets

In other Sysco news, EVP Ronald Phillips sold 960 shares of the company's stock in a transaction on Friday, September 11th. The stock was sold at an average price of $83.00, for a total value of $79,680.00. Following the completion of the sale, the executive vice president directly owned 49,852 shares in the company, valued at approximately $4,137,716. This represents a 1.89% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 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. Also, Director Thomas Gerard Ondrof purchased 2,500 shares of the company's stock in a transaction dated Wednesday, November 4th. The shares were purchased at an average cost of $76.62 per share, for a total transaction of $191,550.00. Following the transaction, the director directly owned 2,500 shares in the company, valued at approximately $191,550. This represents a ∞ increase in their position. The SEC filing for this purchase provides additional information. Over the last ninety days, insiders have sold 15,525 shares of company stock valued at $1,299,736. 0.55% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Sysco

Large investors have recently bought and sold shares of the business. BlackRock Inc. purchased a new stake in Sysco during the 2nd quarter worth about $3,596,356,000. Bank of America Corp DE acquired a new position in shares of Sysco during the 2nd quarter worth about $482,589,000. Dimensional Fund Advisors LP increased its holdings in shares of Sysco by 1.3% in the 1st quarter. Dimensional Fund Advisors LP now owns 4,667,412 shares of the company's stock valued at $332,871,000 after acquiring an additional 59,685 shares during the last quarter. Primecap Management Co. CA purchased a new position in shares of Sysco in the 2nd quarter valued at about $313,503,000. Finally, Bank of New York Mellon Corp acquired a new stake in shares of Sysco during the 2nd quarter worth about $273,323,000. Institutional investors own 83.41% of the company's stock.

Trending Headlines about Sysco

Here are the key news stories impacting Sysco this week:

• Positive Sentiment: Sysco’s local case volume grew 2.7% in fiscal Q1, and its AI transformation is aimed at generating $100 million in savings in fiscal 2027. Sysco: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: UBS said execution remains on track despite first-quarter challenges, offering a supportive view of the company’s operating performance. Sysco's Execution Remains on Track Amid Fiscal Q1 Challenges, UBS Says
• Neutral Sentiment: Sysco kicked off its annual Purpose Month focused on food insecurity and continued its partnership with Happy Day Brands; the announcement may support its reputation but is not a clear near-term earnings catalyst. Sysco Kicks Off 4th Annual Purpose Month
• Negative Sentiment: Fiscal Q1 EPS met expectations, but revenue missed estimates, and softer sales guidance sparked concern about near-term growth. Reports linked the earnings release to a sharp share decline. Sysco retreats on revenue miss and softer sales guidance
• Negative Sentiment: The proposed $29.1 billion Jetro Restaurant Depot acquisition remains subject to FTC clearance, creating regulatory and cost uncertainty. An investor notice also reported a pending investigation related to the deal. Sysco Investigation Notice
• Negative Sentiment: JPMorgan lowered its price target to $92 from $95, a less favorable revision even though the new target remains above the recent share price. JPMorgan Adjusts Price Target on Sysco

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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