
Sysco (SYY) Stock Forecast & Price Target
Sysco (SYY) Analyst Ratings
Bulls say
Sysco is making a strategic move by expanding into the Cash & Carry channel, and while the acquisition of Restaurant Depot at a valuation multiple higher than Sysco's own equity may seem surprising, it will ultimately add considerable revenue and adjusted EBITDA to the company's bottom line. With expected post-transaction leverage of 4.6x and a unique go-to-market approach, the addition of Restaurant Depot is expected to have a positive impact on Sysco's sales, profit margins, and free cash flow yield. Although concerns about ERP costs, restaurant share losses, and potential overseas acquisitions exist, the overall risk-reward profile for Sysco is still attractive, with the stock trading at a low multiple of 10x our 2026E EBITDA and an immediate post-acquisition profitability multiple of 10.3x. As a result, our outlook for Sysco's stock is positive.
Bears say
Sysco is anticipating potential risks in the market due to its acquisition of Restaurant Depot, resulting in shaky financial projections and limited investor confidence. The market has set a relatively rational valuation for Sysco, with a potential 10.5x-11.0x pro forma EBITDA multiple, considering the risk involved with the deal and the company's unimpressive FY2028 pro forma outlook. These factors contribute to a neutral outlook on Sysco's stock, as the market may not be willing to pay a premium for the company's performance and potential risks associated with the acquisition.
This aggregate rating is based on analysts' research of Sysco and is not a guaranteed prediction by Public.com or investment advice.
Sysco (SYY) Analyst Forecast & Price Prediction
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