Barclays Maintains an 'Equalweight' on Sysco (SYY); Outlook is Challenging: Lowering Estimates
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Price: $82.99 -0.67%
Rating Summary:
16 Buy, 13 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
16 Buy, 13 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Barclays maintains an 'Equalweight' on Sysco (NYSE: SYY) price target lowered $2 to $28.00.
Barclays analyst said, "SYY indicated during its 1Q12 earnings call that restaurant operators were struggling to boost traffic. We think that weakness has continued, with data on casual dining restaurants (Knapp Track) suggesting that trends in November decelerated markedly, and now showing traffic down as much as it was at the beginning of 2011. This represents a reversal of trends seen during most of 2011 in which traffic was weak, but the declines were moderating. In addition to weak traffic, recent commentary from food retailers suggest the prices of meat and other foodstuffs will continue to rise for at least the first half of calendar 2012."
"We are lowering our 2Q12 EPS estimate to $0.43 from $0.45 and lowering both our 3Q12 and 4Q12 estimates by $0.01, putting our new FY12 EPS at $1.89 vs. our previous 1.94. Our FY13 EPS was also drops to $2.05 from $2.10...We are maintaining our EW rating since we believe the healthy dividend creates a floor on the stock."
For an analyst ratings summary and ratings history on Sysco click here. For more ratings news on Sysco click here.
Shares of Sysco closed at $29.09 yesterday.
Barclays analyst said, "SYY indicated during its 1Q12 earnings call that restaurant operators were struggling to boost traffic. We think that weakness has continued, with data on casual dining restaurants (Knapp Track) suggesting that trends in November decelerated markedly, and now showing traffic down as much as it was at the beginning of 2011. This represents a reversal of trends seen during most of 2011 in which traffic was weak, but the declines were moderating. In addition to weak traffic, recent commentary from food retailers suggest the prices of meat and other foodstuffs will continue to rise for at least the first half of calendar 2012."
"We are lowering our 2Q12 EPS estimate to $0.43 from $0.45 and lowering both our 3Q12 and 4Q12 estimates by $0.01, putting our new FY12 EPS at $1.89 vs. our previous 1.94. Our FY13 EPS was also drops to $2.05 from $2.10...We are maintaining our EW rating since we believe the healthy dividend creates a floor on the stock."
For an analyst ratings summary and ratings history on Sysco click here. For more ratings news on Sysco click here.
Shares of Sysco closed at $29.09 yesterday.
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