Morgan Stanley Forecasts Strong Price Appreciation for Sysco (NYSE:SYY) Stock

Key Points

• Morgan Stanley raised Sysco’s price target from $84 to $88 while keeping an “equal weight” rating, implying about 6.9% upside from the previous close.
• Analyst sentiment remains mixed: while some firms recently cut targets or ratings, the broader consensus from MarketBeat is still “Hold” with an average price target of $88.38.
• Sysco shares were up 2.0% to $82.34, and the company recently reported quarterly revenue of $20.52 billion, slightly below expectations, with EPS of $0.94 versus the $0.95 consensus.

Sysco (NYSE:SYY - Get Free Report) had its price target lifted by analysts at Morgan Stanley from $84.00 to $88.00 in a research report issued on Thursday,Benzinga reports. The brokerage presently has an "equal weight" rating on the stock. Morgan Stanley's target price suggests a potential upside of 6.88% from the company's previous close.

Several other analysts have also weighed in on the company. Sanford C. Bernstein lowered their price objective on Sysco from $90.00 to $85.00 and set a "market perform" rating for the company in a report on Wednesday, April 29th. UBS Group lowered their price target on Sysco from $95.00 to $90.00 and set a "buy" rating for the company in a report on Thursday, April 2nd. Citigroup upped their price target on Sysco from $78.00 to $80.00 and gave the company a "neutral" rating in a research report on Wednesday, April 29th. Melius Research downgraded shares of Sysco from a "hold" rating to a "sell" rating in a report on Tuesday, July 7th. Finally, Wall Street Zen lowered shares of Sysco from a "buy" rating to a "hold" rating in a research note on Saturday, May 2nd. Nine research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $88.38.

Sysco Stock Up 2.0%

SYY traded up $1.61 during trading on Thursday, hitting $82.34. The company had a trading volume of 100,101 shares, compared to its average volume of 4,243,944. Sysco has a 1-year low of $68.19 and a 1-year high of $91.85. The company has a debt-to-equity ratio of 5.58, a current ratio of 1.33 and a quick ratio of 0.80. The company has a market cap of $39.37 billion, a PE ratio of 22.73, a P/E/G ratio of 3.16 and a beta of 0.64. The business has a 50-day moving average of $78.26 and a 200-day moving average of $79.38.

Sysco (NYSE:SYY - Get Free Report) last released its earnings results on Tuesday, April 28th. The company reported $0.94 earnings per share for the quarter, missing the consensus estimate of $0.95 by ($0.01). The company had revenue of $20.52 billion during the quarter, compared to the consensus estimate of $20.56 billion. Sysco had a return on equity of 103.57% and a net margin of 2.08%.Sysco's revenue for the quarter was up 4.7% on a year-over-year basis. During the same period in the previous year, the firm posted $0.96 EPS. Sysco has set its Q4 2026 guidance at 1.510-1.510 EPS. As a group, analysts forecast that Sysco will post 4.59 earnings per share for the current year.

Insider Transactions at Sysco

In other news, Director John M. Hinshaw purchased 13,304 shares of Sysco stock in a transaction dated Tuesday, May 26th. The stock was bought at an average price of $75.17 per share, with a total value of $1,000,061.68. Following the completion of the acquisition, the director owned 40,200 shares in the company, valued at $3,021,834. The trade was a 49.46% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 0.56% of the company's stock.

Institutional Investors Weigh In On Sysco

Large investors have recently made changes to their positions in the company. Lloyd Advisory Services LLC. bought a new position in Sysco in the 4th quarter worth approximately $25,000. Motiv8 Investments LLC acquired a new position in Sysco during the 4th quarter worth $25,000. Sunbelt Securities Inc. boosted its position in Sysco by 87.6% during the 1st quarter. Sunbelt Securities Inc. now owns 364 shares of the company's stock worth $26,000 after acquiring an additional 170 shares during the period. Torren Management LLC bought a new position in shares of Sysco in the fourth quarter worth $27,000. Finally, Bard Associates Inc. acquired a new position in shares of Sysco during the fourth quarter valued at $27,000. Institutional investors and hedge funds own 83.41% of the company's stock.

About Sysco

Sysco Corporation NYSE: SYY is a global foodservice distribution company that supplies a broad range of food and related products to restaurants, healthcare and educational facilities, lodging establishments, and other foodservice customers. Its core business is the procurement, warehousing and delivery of fresh, frozen and dry food products, complemented by non-food items such as paper goods, kitchen equipment, cleaning supplies and tabletop products. Sysco serves customers through an extensive network of distribution centers and dedicated delivery fleets, positioning itself as a one-stop supplier for operators of all sizes.

Founded in 1969 and headquartered in Houston, Texas, Sysco has grown through both organic expansion and acquisitions.

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