Analyst Edward Kelly from Wells Fargo maintained a Buy rating on Sysco (SYY – Research Report) and increased the price target to $87.00 from $82.00.
Edward Kelly has given his Buy rating due to a combination of factors that suggest potential improvement for Sysco’s stock. Despite facing internal challenges and a weak market backdrop, the company appears to be reaching a turning point, particularly with local sales issues starting to stabilize. Kelly’s analysis indicates that Sysco’s efforts to expand its sales force and address pricing model issues could lead to significant improvements in sales productivity and local case growth by FY’26.
Furthermore, Sysco’s recent management changes and strategic adjustments are expected to enhance its competitive positioning, offering a compelling risk/reward scenario for investors. The stock’s current valuation is near an all-time low, providing an attractive entry point for investors willing to capitalize on the anticipated recovery. Kelly’s price target increase to $87 reflects confidence in Sysco’s potential to outperform as these internal and external challenges are addressed.
In another report released on February 19, Barclays also maintained a Buy rating on the stock with a $85.00 price target.