Morgan Stanley reported on Wednesday that they have downgraded food distributor, SYSCO Corporation(SYY).
The firm has reduced their rating on SYY from “Equal-weight” to “Underweight,” and has given the company a $27 price target. This price target suggests a -15% decline from the stock’s current price of $31.13.
Analysts see the company having margin pressure due to the rise in food inflation.
SYSCO shares were down 39 cents, or -1.24% during premarket trading Wednesday. The stock has increased 8.7% in the past year.
The Bottom Line
Shares of SYSCO Corporation (SYY) have a 3.56% dividend yield, based on last night’s closing stock price of $31.44. The stock has technical support in the $29-$30 price area. If the shares can firm up, we see overhead resistance around the $32-$33 price levels.
SYSCO Corporation(SYY) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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