UPDATE: J.P. Morgan Lowers Sysco's PT

According to a research report published this morning, J.P. Morgan has lowered Sysco's SYY PT from $33 to $31. In the report, J.P. Morgan commented, "We remain confident in Sysco's ability to be a long-term share gainer, but we believe EPS and FCF will be constrained through at least F13 given the business transformation (ERP) investment (both opex and capex) and $212m annual tax settlement cash payments (to be completed in F4Q12), matched with a continued very competitive pricing environment and priceaware customer reducing gross margin visibility. We lower our Dec-12 price target to $31 based on a 15x multiple on revised C13E EPS of $2.09, with the next major catalyst being next week's investor day (May 17th) where we hope to receive better visibility on ERP expense headwinds from F13 onwards." J.P. Morgan maintains its Neutral rating on Sysco, which is currently trading at $28.07.