Sysco (SYY – Research Report), the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Alexander Slagle from Jefferies maintained a Buy rating on the stock and has a $88.00 price target.
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Alexander Slagle has given his Buy rating due to a combination of factors that highlight Sysco’s strong market position and growth potential. The company is well-positioned to capitalize on long-term market share opportunities both in the U.S. and internationally, thanks to its size and scale which allow for significant investments in technology, supply chain, and workforce. These investments are expected to drive sustained market share gains.
Additionally, Sysco’s international operations have shown impressive performance with six consecutive quarters of double-digit operating profit growth, demonstrating the effectiveness of its strategic initiatives. The company’s strong return on invested capital, robust free cash flow generation, and attractive long-term total shareholder return prospects further support the positive outlook. Despite some recent challenges, such as changes in the sales force compensation model, Sysco is implementing strategies to overcome these hurdles, suggesting a path to improved fundamentals and growth.
In another report released on June 2, UBS also reiterated a Buy rating on the stock with a $83.00 price target.