Zacks Reiterates “Neutral” Rating for Sysco Corp. (SYY)
Sysco Corp. (NYSE:SYY)‘s stock had its “neutral” rating reaffirmed by Zacks in a note issued to investors on Tuesday, American Banking and Market News reports. They currently have a $36.00 target price on the stock. Zacks‘ price objective indicates a potential upside of 4.08% from the company’s current price.
Zacks‘ analyst wrote, “Sysco’s second quarter fiscal 2014 earnings of $0.47 beat the Zacks Consensus Estimate by 17.5% but declined from the prior-year quarter by 4.1% due to modest sales growth and margin pressure. The year-over-year results were dampened by weak economic environment, which also led to lower-than-expected sales. Currency also declined sales in the quarter. Sales however grew 4.1% from the prior-year quarter, driven by acquisition and volume growth. We are also positive about the company’s deal with US Foods as it is expected to improve efficiencies. We also appreciate the company’s growth strategy and its efforts to reduce costs and improve efficiency. However, we are concerned about rising costs which may hurt margins. We therefore remain Neutral on the stock.”
Sysco Corp. (NYSE:SYY) traded up 0.23% during mid-day trading on Tuesday, hitting $34.59. 4,836,986 shares of the company’s stock traded hands. Sysco Corp. has a 52 week low of $31.13 and a 52 week high of $43.40. The stock’s 50-day moving average is $36.11 and its 200-day moving average is $33.92. The company has a market cap of $20.117 billion and a price-to-earnings ratio of 20.79.
Sysco Corp. (NYSE:SYY) last issued its quarterly earnings data on Monday, February 3rd. The company reported $0.40 EPS for the quarter, meeting the Thomson Reuters consensus estimate of $0.40. The company had revenue of $11.20 billion for the quarter, compared to the consensus estimate of $11.36 billion. During the same quarter in the previous year, the company posted $0.40 earnings per share. The company’s revenue for the quarter was up 4.1% on a year-over-year basis. Analysts expect that Sysco Corp. will post $1.85 EPS for the current fiscal year.
Separately, analysts at Credit Suisse upgraded shares of Sysco Corp. from an “underperform” rating to a “neutral” rating in a research note to investors on Monday, December 9th. Three analysts have rated the stock with a sell rating, eight have given a hold rating and two have given a buy rating to the company’s stock. The company has a consensus rating of “Hold” and an average target price of $32.90.
Sysco Corporation (NYSE:SYY), along with its subsidiaries and divisions, is a North American distributor of food and related products primarily to the foodservice or food-away-from-home industry.
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