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Piper Sandler increased its price target from $77 to $84 following the company's recent financial results. The firm is keeping a neutral rating, which means they think the stock is fairly valued at its current price. While the business is performing well, this target suggests the analyst sees limited room for the stock to rise much further in the near term.
Source: Piper Sandler
The company reported quarterly earnings of $1.53 per share, slightly ahead of the $1.51 analysts expected. Revenue rose nearly 5 percent to $22.12 billion, driven by steady demand from local restaurants. This is a key win because independent restaurants provide higher profit margins than large national chains.
Looking ahead, management expects adjusted earnings to grow between 9 and 11 percent in the coming fiscal year. This outlook suggests the company is successfully using its massive scale to manage costs while winning more business from the smaller, more profitable customers that drive its long-term value.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
The company has halted lettuce purchases from Taylor Farms and Mexico in response to a U.S. outbreak of cyclosporiasis, a parasitic illness. While this requires a quick shift in the supply chain, the company's massive network of alternate suppliers usually allows it to handle these types of food safety events without a major impact on total sales.
Source: Reuters
Sysco has a reliable habit of meeting or slightly beating expectations, which suggests management has a very clear handle on its massive delivery network.
| Expectation | |
|---|---|
| EPS | $1.17 |
| Revenue | $22.02B |