Analyst Karen Holthouse of Citi maintained a Hold rating on Sysco, boosting the price target to $86.00.
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Karen Holthouse’s rating is based on a combination of factors that influence Sysco’s current market position and future prospects. The company’s stock has been influenced by stronger industry data and a potential shift in headcount dynamics, which initially led to positive tracking. However, as industry data softened, the stock’s performance mirrored the broader market downturn.
Holthouse also considers the ongoing challenges such as pockets of inflation and the potential for a deflationary environment, which could impact Sysco’s gross profit and operating expenses. Additionally, while Sysco is making strides with initiatives like AI-powered sales tools and strategic sourcing, uncertainties remain regarding their impact on sales and customer retention. These mixed signals contribute to the Hold rating, as the positive factors are balanced by potential risks and uncertainties.
In another report released today, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $85.00 price target.
SYY’s price has also changed moderately for the past six months – from $71.840 to $80.140, which is a 11.55% increase.