Sysco to Introduce New Management at Analyst Day in Boston, Discuss Growth Opportunities
Oct 10, 2007

NEW YORK (Associated Press) - Sysco Corp. is expected to discuss a recent management shuffle and growth opportunities at its analyst meeting in Boston on Friday.

In August, the food distributor reported fiscal fourth-quarter profit that beat Wall Street expectations on better cost controls.

UBS Investment Research analyst Ajay Jain said in a client note that Friday's meeting comes on the heels of an important transition year for the company. Although food costs have risen this year, Jain said the company remains well-positioned to pass the extra expense on to customers.

"Although investors' perceptions of Sysco have fluctuated widely in recent years between that of a consumer staple, versus a purely discretionary type stock, we think Sysco has demonstrated that it's not solely dependent on industry growth," Jain wrote in a client note.

To spur growth, Jain said Sysco will probably mull niche opportunities, such as custom cut meat and produce. Jain said it's likely that the company hasn't ruled out acquisitions, especially overseas.

Jain expects Sysco to introduce new members of management at the meeting, following the recent promotion of Chief Operating Officer Ken Spitler and Chief Financial Officer Bill Delaney.

Jain has a "Buy" rating on the stock and $41 price target, which implies upside of nearly 20 percent to Thursday's $34.25 closing price. Top of page


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