Barclays Maintains an 'Equalweight' on Sysco (SYY); 4Q11 Earnings Preview
Tweet
Share
E-mailGet Alerts SYY Hot Sheet
Price: $83.62 +0.67%
Rating Summary:
16 Buy, 13 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
16 Buy, 13 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Join SI Premium – FREE
Barclays maintains an 'Equalweight' on Sysco (NYSE: SYY) price target of $30.00.
Barclays analyst says, "We are forecasting 4Q11 EPS of $0.60, $0.03 above consensus. We expect total sales to increase by 8.8%, with inflation of 5.5%, real sales growth of 2.3%, and growth from acquisitions of 0.6%...We expect the gross margin to contract by 5 bp, driven by the inability to pass on price increases in key perishables and price investments in certain categories."
"Industry data indicates that traffic at casual dining restaurants has finally turned positive after many years of declines. While this may seem to bode well for volumes in the food distribution industry, it tells us less about the direction of profits given food inflation has been difficult to pass along and SYY's expenses have been rising rapidly, in part due to business transformation expenses and the hiring of additional marketing associates. We think the stock is fully valued."
For more ratings news on Sysco click here and for the rating history of Sysco click here.
Shares of Sysco closed at $29.00 yesterday.
Barclays analyst says, "We are forecasting 4Q11 EPS of $0.60, $0.03 above consensus. We expect total sales to increase by 8.8%, with inflation of 5.5%, real sales growth of 2.3%, and growth from acquisitions of 0.6%...We expect the gross margin to contract by 5 bp, driven by the inability to pass on price increases in key perishables and price investments in certain categories."
"Industry data indicates that traffic at casual dining restaurants has finally turned positive after many years of declines. While this may seem to bode well for volumes in the food distribution industry, it tells us less about the direction of profits given food inflation has been difficult to pass along and SYY's expenses have been rising rapidly, in part due to business transformation expenses and the hiring of additional marketing associates. We think the stock is fully valued."
For more ratings news on Sysco click here and for the rating history of Sysco click here.
Shares of Sysco closed at $29.00 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Walmart (WMT) PT Lowered to $130 at UBS on Investment Narrative's Competing Dynamics
- Mizuho Reiterates Outperform Rating on Broadcom Limited (AVGO) Into EPS
- Is the global equity rally broadening? UBS weighs in
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
Barclays, Raising Prices, EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
