Sysco: Strategic Restaurant Depot Acquisition Drives EPS Accretion and Supports Outperform Rating Despite Higher Leverage

Kelly Bania, an analyst from BMO Capital, reiterated the Buy rating on Sysco. The associated price target remains the same with $90.00.

Kelly Bania has given his Buy rating due to a combination of factors tied to Sysco’s planned acquisition of Restaurant Depot and the company’s core fundamentals. She views the deal as strategically attractive because Restaurant Depot has minimal overlap with Sysco’s existing customers, a strong long‑term growth record, and meaningful white‑space opportunities, while integration risk is contained by operating it as a separate segment.

Bania also highlights sizable procurement-driven synergies, strong expected EPS accretion in the first two years, and a resilient food-service demand backdrop supported by Sysco’s sales initiatives and market-share potential. While she acknowledges higher leverage and execution risks, her analysis suggests free cash flow should allow gradual de-leveraging, and she believes the long-run earnings power justifies maintaining an Outperform rating and a favorable valuation framework for the shares.

In another report released today, Bank of America Securities also reiterated a Buy rating on the stock with a $102.00 price target.

SYY’s price has also changed moderately for the past six months – from $82.340 to $71.330, which is a -13.37% drop .