Argus cuts Sysco to Hold amid rising product and labor costs

Argus analyst John Staszak downgraded Sysco to Hold from Buy after its Q2 earnings miss and guidance. The analyst is expressing concerns with the company’s high product costs which have been rising "for several quarters" and saw an 8.3% increase in Q2. The firm is also cutting its FY23 EPS view by 15c to $4.05 and its FY24 view by 10c to $4.80 to reflect the increase in product costs and the higher labor costs in the coming quarters.