SYSCO Corporation (SYY) Estimates And Price Target Raised

Analyst Ajay Jain at Hapoalim Securities has released an update on SYSCO Corporation (NYSE: SYY).

The company reported EPS of $0.45 for the second quarter, beating analysts’ and consensus estimates. The upside was mainly provided by a $25 million decline in payroll expenses.

Hapoalim Securities has raised the FY10 EPS estimate from $1.85 to $1.92. The estimates have been raised after factoring in lower payroll costs, favorable comparisons for bad debt expense and lower fuel costs. Hapoalim Securities expects these to be partially offset by higher cost for ERP roll out.

The price target for the company has been raised to $27. Hapoalim Securities has maintained its Neutral rating for SYSCO Corporation.