Key insights
- Morgan Stanley lowered its price target for Sysco (SYY) from $86 to $84, citing revenue and EBIT misses. While EPS matched prior announcements, the firm doesn't expect upward revisions due to the pending Restaurant Depot acquisition. Sysco's strong dividend profile is a positive, but near-term headwinds persist. The stock appears undervalued according to InvestingPro analysis. Recent earnings also missed forecasts, but the company emphasizes year-over-year growth.
Investing.com - Morgan Stanley lowered its price target on Sysco Corp. (NYSE:SYY) to $84 from $86 while maintaining an Equalweight rating on the shares. The stock currently trades at $73.39, suggesting potential upside to the analyst’s target. According to InvestingPro analysis, Sysco appears undervalued at current levels, with a Fair Value indicating room for appreciation.
The firm cited revenue and EBIT results that came in below expectations, though local cases and earnings per share matched the company’s prior announcement.
Morgan Stanley noted some variations in ancillary profit and loss line items. The analyst said the fourth quarter is basically on track.
The firm does not expect upward revisions for the core business as Sysco works toward closing its acquisition of Restaurant Depot.
Morgan Stanley said the Restaurant Depot deal remains the main focus for the company at this time. Despite near-term headwinds, Sysco maintains a strong dividend profile, having raised its dividend for 10 consecutive years—one of several key insights available in the comprehensive Pro Research Report on InvestingPro.
In other recent news, Sysco Corporation announced its third-quarter fiscal 2026 earnings, revealing a slight miss on both earnings per share (EPS) and revenue forecasts. The company reported an EPS of $0.94, which was just below the expected $0.95. Revenue for the quarter reached $20.5 billion, falling short of the anticipated $20.55 billion. Despite these misses, Sysco emphasized its robust year-over-year growth and operational improvements. Additionally, there has been no mention of any mergers or acquisitions in this period. Analyst firms have not recently upgraded or downgraded Sysco’s stock. The company continues to focus on its operational strategies amid these financial developments.
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