In a report released yesterday, Edward Kelly from Wells Fargo maintained a Buy rating on Sysco (SYY – Research Report), with a price target of $80.00.
Edward Kelly has given his Buy rating due to a combination of factors that suggest potential for Sysco’s stock to improve despite current challenges. Although Sysco’s recent quarterly performance fell short of expectations, with earnings per share below consensus and a decline in case volumes, Kelly sees opportunities for an internal turnaround. The company’s management is under pressure to address operational issues, but the resilience of Sysco’s business model and its current valuation provide a foundation for optimism.
Furthermore, while macroeconomic conditions remain uncertain, Sysco’s historical resilience in the food service sector offers a buffer against potential downturns. Kelly acknowledges the company’s self-inflicted issues, such as sales turnover and pricing challenges, but anticipates improvement as productivity normalizes and new hires ramp up. Despite lowering the fiscal year 2026 earnings outlook, the potential for significant upside exists if Sysco successfully implements corrective actions and the industry environment stabilizes, making the current valuation attractive for investors.
In another report released yesterday, Bank of America Securities also reiterated a Buy rating on the stock with a $81.00 price target.