11 analysts have expressed a variety of opinions on Sysco (NYSE:SYY) over the past quarter, offering a diverse set of opinions from bullish to bearish.
The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 5 | 3 | 3 | 0 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 1 | 0 | 0 | 0 | 0 |
| 2M Ago | 2 | 3 | 1 | 0 | 0 |
| 3M Ago | 2 | 0 | 1 | 0 | 0 |
In the assessment of 12-month price targets, analysts unveil insights for Sysco, presenting an average target of $84.27, a high estimate of $87.00, and a low estimate of $79.00. A 3.58% drop is evident in the current average compared to the previous average price target of $87.40.
Breaking Down Analyst Ratings: A Detailed Examination
A comprehensive examination of how financial experts perceive Sysco is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| John Glass | Morgan Stanley | Lowers | Equal-Weight | $81.00 | $82.00 |
| Jake Bartlett | Truist Securities | Lowers | Buy | $85.00 | $87.00 |
| John Heinbockel | Guggenheim | Announces | Buy | $85.00 | - |
| Lauren Silberman | Deutsche Bank | Lowers | Buy | $86.00 | $90.00 |
| Jeffrey Bernstein | Barclays | Lowers | Overweight | $85.00 | $88.00 |
| Kelly Bania | BMO Capital | Lowers | Outperform | $85.00 | $90.00 |
| John Ivankoe | JP Morgan | Lowers | Overweight | $85.00 | $87.00 |
| Brian Harbour | Morgan Stanley | Lowers | Equal-Weight | $82.00 | $84.00 |
| Jake Bartlett | Truist Securities | Lowers | Buy | $87.00 | $91.00 |
| Mark Carden | UBS | Lowers | Buy | $87.00 | $92.00 |
| Brian Mullan | Piper Sandler | Lowers | Neutral | $79.00 | $83.00 |
Key Insights:
- Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Sysco. This information offers a snapshot of how analysts perceive the current state of the company.
- Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Sysco compared to the broader market.
- Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Sysco's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.
For valuable insights into Sysco's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.
Stay up to date on Sysco analyst ratings.
Discovering Sysco: A Closer Look
Sysco is the largest US foodservice distributor with 17% share of the highly fragmented $370 billion domestic market. It distributes roughly 500,000 food and nonfood products to restaurants (62% of fiscal 2023 revenue), education and government buildings (8%), travel and leisure (8%), healthcare facilities (7%), and other locations (15%) where individuals consume away-from-home meals. In fiscal 2023, 70% of the firm's revenue was derived from its US foodservice operations, while its international (18%), quick-service logistics (10%), and other (2%) segments contributed the rest.
Key Indicators: Sysco's Financial Health
Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.
Revenue Growth: Sysco's remarkable performance in 3 months is evident. As of 31 March, 2024, the company achieved an impressive revenue growth rate of 2.67%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Staples sector.
Net Margin: Sysco's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 2.19%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 18.85%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): Sysco's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.72% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: With a high debt-to-equity ratio of 6.24, Sysco faces challenges in effectively managing its debt levels, indicating potential financial strain.
Understanding the Relevance of Analyst Ratings
Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.
Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.
This article was generated by Benzinga's automated content engine and reviewed by an editor.