What Made Pivotal Research Downgrade Sysco Corp’s Stock?

In a report released today, Ajay Jain from Pivotal Research downgraded Sysco Corp (NYSE: SYY) to Sell, with a price target of $58. The company’s shares closed yesterday at $70.03, close to its 52-week high of $71.97.

Jain observed:

“We’ve further assumed $2.8 billion in adj. operating income and 4.6% operating margin by FY20.”

According to TipRanks.com, Jain is a 4-star analyst with an average return of 7.9% and a 53.9% success rate. Jain covers the Services sector, focusing on stocks such as Walgreens Boots Alliance, US Food Holdings Corp, and United Natural Foods.

The word on The Street in general, suggests a Hold analyst consensus rating for Sysco Corp with a $69 average price target.

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Based on Sysco Corp’s latest earnings release for the quarter ending March 31, the company reported a quarterly net profit of $330 million. In comparison, last year the company had a net profit of $305 million.

Based on the recent corporate insider activity of 165 insiders, corporate insider sentiment is negative on the stock.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

Sysco Corp. engages in selling, marketing, and distribution of food products to restaurants, healthcare and educational facilities, and lodging establishments. It operates through the following segments: U.S. Foodservice Operations, International Foodservice Operations, SYGMA, and Other.

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