Guggenheim Maintains Neutral Rating on Sysco (SYY) Following Results
Guggenheim analyst John Heinbockel reiterates Neutral rating on Sysco (NYSE: SYY), seeing continued weakness due to cautious near-term commentary from the company.
Heinbockel notes, "SYY shares fell 2.5% yesterday (vs. the S&P 500's 0.2% decline), despite both a 2Q EPS beat and raised EBIT guidance, on cautious N-T commentary, especially around the 3Q US compare and Brakes’ seasonality. We view this commentary as partially the product of conservatism and we are raising our 2017/2018 estimates, not solely to reflect the 2Q beat. We believe the company’s scale, rational approach to pricing, and proactive cost reduction efforts allow it to control its own bottom-line destiny in a way few large consumer businesses do."
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Shares of Sysco closed at $51.20 yesterday.