Sysco price target lowered to $85 from $90 at BMO Capital

BMO Capital lowered the firm’s price target on Sysco to $85 from $90 but keeps an Outperform rating on the shares. The company’s planned 6%-8% EBIT and EPS growth targets for the next three years was in line with expectations, and the management struck a prudent balance between delivering growth and setting more achievable targets than in the past, the analyst tells investors in a research note. BMO is trimming its valuation relative to pre-COVID levels but adds that an acceleration in Sysco’s local case growth trends, supported by its multi-year salesforce investment, could still support valuation upside relative to today’s levels, the firm added.