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."

For an analyst ratings summary and ratings history on Sysco click here. For more ratings news on Sysco click here.

Shares of Sysco closed at $51.20 yesterday.

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