UPDATE: Cantor Fitzgerald Downgrades SYSCO Corporation to Sell on Valuation
In a report published Friday, Cantor Fitzgerald analyst Ajay Jain downgraded the rating on SYSCO Corporation (NYSE: SYY) from Hold to Sell, but reiterated the $28.00 price target.
In the report, Jain noted, “Since we are not prepared to materially raise estimates at this time, we don't have reasonable basis to maintain a HOLD rating at current levels. We note that Sysco is heading into a more critical period in 2H:13 with the ERP rollout during which cost savings are expected to significantly offset the incremental spending related to the project. Additionally, the stock has outperformed the S&P 500 by 630 bps following what was widely viewed as a disappointing earnings report by Sysco on Feb. 4. We are hard pressed to identify any key fundamental drivers behind the recent stock performance.”
SYSCO Corporation closed on Thursday at $35.02.
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