BMO Capital on Wednesday maintained its Outperform rating on Sysco (NYSE:SYY) and kept its $90.00 price target, pointing to encouraging sequential improvement in local case growth across the company’s markets. The stock is trading at $84.67, up 14.72% year-to-date, and has recently moved above a previous 52-week high of $83.96.
In its assessment, BMO highlighted momentum in local markets as a key underpinning of its view that Sysco can return to algorithm-type EPS growth by fiscal 2027. The research firm noted that consensus forecasts for fiscal 2026 EPS sit at $4.59 per share according to InvestingPro data, marginally higher than BMO’s own fiscal 2026 estimate of $4.57.
BMO described second-half expectations as manageable and cited a number of supporting factors: a fully stabilized sales force retention profile, sustained strength in international operations, new business wins at national accounts, deployment of AI tools, and opportunities associated with the Sysco Brand. The firm said it updated its financial model to incorporate recent tuck-in acquisitions, and made only modest adjustments to its second-half forecasts as a result.
Following the model updates, BMO slightly raised its fiscal 2026 EPS estimate to $4.57 while leaving its fiscal 2027 EPS forecast unchanged. The firm reiterated the $90 price target, signaling continued confidence in the company’s growth trajectory even after incorporating the recent deal activity into its model.
Sysco’s second-quarter results have also prompted revisions from several other analysts. UBS moved its price target to $95, citing strong quarterly results and a 140 basis-point improvement in U.S. local case volumes to 1.2%. Piper Sandler adjusted its price target to $83 and pointed to positive U.S. Foodservice case growth of 0.8%, which it said was in line with expectations. Bernstein lifted its price target to $90, referencing stronger-than-expected top-line performance and the 1.2% local case volume growth figure. Guggenheim, while maintaining a Buy rating, increased its price target to $91.
Those upward adjustments from multiple brokerages reflect the market’s reception to Sysco’s recent operational trends and the degree of analyst confidence in the company’s near-term trajectory. The firm-level notes emphasized local case volume improvements and top-line resilience as central drivers behind the revised valuations and continued favorable coverage.
How the market is reacting
The stock’s move above its previous 52-week high and year-to-date gain are consistent with the analyst commentary that has followed the company’s quarterly release. Analysts’ price-target lifts and BMO’s maintained Outperform suggest a generally constructive view among coverage houses, based on the metrics cited in their research notes.
What remains clear from the published notes is that incremental local case growth, stabilized sales force metrics, international strength, and targeted acquisition activity are the specific areas analysts point to when assessing Sysco’s ability to return to more predictable EPS expansion in the coming years.