Sysco price target lowered to $77 from $83 at Piper Sandler

Piper Sandler lowered the firm’s price target on Sysco (SYY) to $77 from $83 and keeps a Neutral rating on the shares after the company announced that is has entered into a definitive agreement to acquire Restaurant Depot for total consideration of $29.1B. The firm says it was “quite surprised” by this announcement. Overall, however, Piper notes that it is not huge fans of this transaction, which seems to align with the market’s view as well, judging by the share price reaction. The firm thinks the market reaction was fairly rational, and it would therefore not be a buyer on this pullback.