UBS Reaffirms Buy on Sysco Amid Strategic Market Share Focus

Sysco Corporation (NYSE:SYY) ranks among the best FMCG stocks to buy. With a price target of $83, UBS analysts reaffirmed their Buy rating on Sysco Corporation (NYSE:SYY) on June 2. The update comes as Sysco stressed its strategic focus in recent meetings, even in the face of difficult macroeconomic conditions.

Sysco Corporation (NYSE:SYY) has been experiencing traffic issues for around 15 months, with industry volume growth and inflation rates having settled. The company now believes that it is in a position to increase its market share despite these constraints. The company admitted to temporary interruptions brought on by adjustments to Salesforce compensation and a hold-up in hiring more employees in comparison to rivals. Nonetheless, Sysco expanded its workforce by about 7% last year and anticipates modest future growth.

Additionally, Sysco Corporation (NYSE:SYY) intends to bolster its margins by investing more than $100 million in cost-cutting measures aimed at selling, general, and administrative costs as well as the cost of goods sold.

The biggest wholesale food distributor in the United States, Sysco Corporation (NYSE:SYY) markets and distributes goods to a range of establishments, including restaurants, healthcare facilities, and educational institutions.

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