Truist Securities raises Sysco stock price target to $90 on sales force changes

Published 30/07/2025, 17:06
Truist Securities raises Sysco stock price target to $90 on sales force changes

Investing.com - Truist Securities raised its price target on Sysco (NYSE:SYY) to $90.00 from $81.00 on Wednesday, while maintaining a Buy rating on the food distribution company. The new target aligns with broader analyst sentiment, as revealed by InvestingPro data showing the stock is currently undervalued with a consensus Buy rating (1.94) from analysts.

The price target increase follows Sysco’s fiscal fourth-quarter 2025 results, which showed better-than-expected sales and adjusted EBITDA performance, though the company provided lower-than-expected guidance for fiscal year 2026. The company’s robust performance is reflected in its $80.79 billion trailing twelve-month revenue and strong financial health score of "GOOD" according to InvestingPro metrics.

Truist Securities noted that Sysco’s sales force changes, which had been a headwind since July 2024, finally turned into a tailwind in June 2025, marking a positive inflection point for the company.

The firm expects this tailwind to strengthen, with additional benefits coming from sales initiatives including "Perks 2.0," "AI360," and increased pricing agility, which should help Sysco accelerate market share gains.

Despite lowering estimates based on Sysco’s conservative fiscal 2026 guidance, Truist Securities expressed confidence that after a challenging year, the company is beginning to deliver on expectations.

In other recent news, Sysco Corporation reported its fourth-quarter 2025 earnings, surpassing Wall Street expectations. The company achieved an adjusted earnings per share (EPS) of $1.48, exceeding the forecasted $1.39, and reported revenues of $21.14 billion, which was higher than the anticipated $21 billion. Barclays (LON:BARC) responded to these results by raising its price target for Sysco to $82, citing improved U.S. local case growth and earnings per share that exceeded expectations. Meanwhile, UBS adjusted its price target for Sysco to $90, noting that the company’s top and bottom line guidance was impacted by one-time issues. Despite these achievements, Sysco’s stock experienced a decline, attributed to broader market trends and future guidance concerns. Both Barclays and UBS maintained positive ratings on Sysco, with Barclays giving an Overweight rating and UBS a Buy rating. These developments highlight the mixed investor sentiment surrounding Sysco’s recent performance and future outlook.

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