Key Takeaways From Sysco Analyst Ratings

Ratings for Sysco SYY were provided by 5 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Analysts have recently evaluated Sysco and provided 12-month price targets. The average target is $85.8, accompanied by a high estimate of $88.00 and a low estimate of $81.00. A 0.23% drop is evident in the current average compared to the previous average price target of $86.00.

Deciphering Analyst Ratings: An In-Depth Analysis

The analysis of recent analyst actions sheds light on the perception of Sysco by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Sysco. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Sysco compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Sysco's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

To gain a panoramic view of Sysco's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious 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 2024 revenue), education and government buildings (7%), travel and leisure (6%), healthcare facilities (7%), and other locations (18%) where individuals consume away-from-home meals. In fiscal 2024, 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.

Sysco's Economic Impact: An Analysis

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

Revenue Growth: Over the 3 months period, Sysco showcased positive performance, achieving a revenue growth rate of 4.19% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the 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 2.98%, 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 30.89%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 2.46%, the company showcases effective utilization of assets.

Debt Management: Sysco's debt-to-equity ratio is notably higher than the industry average. With a ratio of 6.96, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

The Significance of Analyst Ratings Explained

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

This article was generated by Benzinga's automated content engine and reviewed by an editor.