As previously reported, Wells Fargo analyst Edward Kelly downgraded Sysco (SYY) to Equal Weight from Overweight with a $75 price target as the risk/reward on the name has "markedly deteriorated." While the analyst views the food service industry positively and recognizes Sysco's "strong competitive position," he has growing concerns around the Q2 earnings update that raised questions around current fundamentals and back half outlook, and around the recent leadership change, which introduces distinct risk as it provides further evidence that something is not right with the current performance, carries uncertainty around possible strategic change, and creates risk around further investment in 2021. Further, he expects better performance at Performance Food Group (PFGC) and US Foods (USFD), which would raise further concerns around company specific issues, and sees valuation carrying risk.