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SYY

Sysco

$50.78

-1.9958 (-3.78%)

, USFD

US Foods

$26.33

-1.275 (-4.62%)

10:27
06/23/17
06/23
10:27
06/23/17
10:27

JPMorgan sees food distributors facing competition from Amazon

Noting that Amazon's (AMZN) acquisition of Whole Foods (WFM) has shown that it's open to expensive, "transformative" acquisitions, JPMorgan believes that there is a greater chance that the e-commerce behemoth will disrupt the business models of food service distributors. As a result, the firm removed food distributor Sysco (SYY) from its Analyst Focus List. AMAZON'S INDEPENDENT RESTAURANT OPPORTUNITY: There is now a greater chance that Amazon will begin looking to deliver food to independent restaurants, either by building such a business on its own or by making an acquisition, wrote JPMorgan analysts John Ivankoe and Alex Morgard. Such a move would be "logical" for the e-commerce giant, wrote the analysts, who noted that independent restaurants "buy larger pack sizes, demand larger delivery sizes, and are highly repetitive in terms of what they buy." Independent restaurants will appreciate Amazon's "digital engagement," and "price transparency," as well as its ability to customize offers based on the restaurants ordering habits, Ivankoe and Morgard believe. Moreover, Amazon already delivers prepared restaurant food to consumers through its Amazon Now offering, they noted. DISTRIBUTORS' EXPOSURE: Sysco has approximately 40% exposure to independent restaurants, while US Foods (USFD) has exposure of about 30% and Performance Food Group (PFGC) has about 26% exposure, the analyst stated. However, the independent restaurants probably contribute a higher proportion of the companies' operating income, given the restaurants' "favorable economics," according to Ivankoe and Morgard. PRICE ACTION: In morning trading, Sysco fell 4.7% to $50.30, Performance Food retreated 5% to $25.90, and US Foods slumped 5.6% to $26.05.

SYY

Sysco

$50.78

-1.9958 (-3.78%)

USFD

US Foods

$26.33

-1.275 (-4.62%)

PFGC

Performance Food Group

$26.00

-1.25 (-4.59%)

AMZN

Amazon.com

$1,001.30

-0.93 (-0.09%)

WFM

Whole Foods

$43.20

-0.06 (-0.14%)

  • 28

    Jun

SYY Sysco
$50.78

-1.9958 (-3.78%)

06/23/17
JPMS
06/23/17
NO CHANGE
Target $57
JPMS
Overweight
Sysco removed from Analyst Focus List at JPMorgan
JPMorgan analyst John Ivankoe removed Sysco (SYY) from the firm's Analyst Focus List, citing increased risk that Amazon (AMZN) becomes a disruptor to the foodservice distribution industry following its deal to buy Whole Foods. However, Ivankoe keeps an Overweight rating and $57 price target on Sysco shares.
05/04/17
BMOC
05/04/17
UPGRADE
BMOC
Outperform
Sysco upgraded on attractive attributes at BMO Capital
As noted earlier, BMO Capital upgraded Sysco to Outperform from Market Perform. Analyst Kelly Bania says that investors may rotate into Sysco, given what she sees as the company's "similar financial profile to consumer staple stocks" and its lower risk compared with many of the names in that category. The analyst says that food service volumes appear to be steady, while the company is more protected from Amazon (AMZN) than many consumer staple names. Target to $60 from $56.
05/15/17
LOOP
05/15/17
INITIATION
Target $61
LOOP
Buy
Sysco initiated with a Buy at Loop Capital
Loop Capital analyst Andrew Wolf initiated Sysco with a Buy rating and $61 price target, noting that his 2017 and 2018 profit forecasts are above consensus and expressing a positive view on the company's strategic focus on boosting returns on existing assets.
06/16/17
RBCM
06/16/17
NO CHANGE
RBCM
Amazon deal shouldn't directly hurt foodservice distributors, says RBC Capital
RBC Capital said Amazon's (AMZN) deal for Whole Foods (WFM) should not have a direct negative impact on foodservice distributors such as Sysco (SYY), US Foods (USFD) and Performance Food Group (PFGC), noting that there is not enough dock space at Whole Foods to help the e-commerce giant service restaurant needs, though they do acknowledge that combo may take a "small share" from restaurant occasions.
USFD US Foods
$26.33

-1.275 (-4.62%)

05/15/17
LOOP
05/15/17
INITIATION
Target $31
LOOP
Hold
US Foods initiated with a Hold at Loop Capital
Loop Capital analyst Andrew Wolf started US Foods with a Hold rating and $31 price target. The analyst views the shares as fairly valued.
05/16/17
FBCO
05/16/17
NO CHANGE
Target $35
FBCO
Outperform
US Foods added to U.S. Focus List at Credit Suisse
Credit Suisse analyst reinstated coverage of US Foods with an Outperform rating and raised his price target to $35 from $32, saying that the company's Q1 results illustrate that its momentum remains strong and that its cash return potential is underappreciated. The firm also added US Foods to its US Focus List.
06/07/17
FBCO
06/07/17
NO CHANGE
FBCO
US Foods removed from U.S. Focus List at Credit Suisse
Credit Suisse removed U.S. Foods from its U.S. Focus List citing the departure of the primary analyst.
PFGC Performance Food Group
$26.00

-1.25 (-4.59%)

06/16/17
GUGG
06/16/17
NO CHANGE
GUGG
Performance Food added to Best Ideas List, Kroger removed at Guggenheim
05/15/17
LOOP
05/15/17
INITIATION
Target $35
LOOP
Buy
Performance Food Group initiated with a Buy at Loop Capital
Loop Capital analyst Andrew Wolf initiated Performance Food Group with a Buy rating and $35 price target, predicting that its organic case volume gains will lead to strong earnings growth.
03/16/17
GSCO
03/16/17
UPGRADE
Target $29
GSCO
Conviction Buy
Performance Food Group upgraded to Conviction Buy from Buy at Goldman
Goldman Sachs analyst Matthew Fassler upgraded Performance Food Group to Conviction Buy saying independent sales will drive growth well ahead of restaurant industry volumes. The analyst lowered his price target for the shares to $29 from $30.
AMZN Amazon.com
$1,001.30

-0.93 (-0.09%)

06/23/17
LEHM
06/23/17
NO CHANGE
Target $48
LEHM
Overweight
Competing Whole Foods bid of $50 or higher 'not unrealistic,' says Barclays
Barclays analyst Karen Short said a potential strategic bidders for Whole Foods (WFM) can "rationally outbid" Amazon (AMZN) based on the roughly $750M in synergies she estimates for a buyer such as Kroger (KR) or Wal-Mart (WMT). For Kroger, she estimates that a 100% debt-financed bid at $50 could be about 6% accretive, and a Whole Foods bid up to $60 would still be accretive. For Wal-Mart, a 100% debt-financed bid at $50 could be about 2% accretive, though a could still be accretive bid up to $70 per share, she tells investors. Whole Foods was not "shopped," based on public documents, and the math indicates a superior, competing bid is "feasible," said Short, who also notes that Amazon could then outbid any other offer. Short has an Overweight rating and $48 price target on Whole Foods shares.
06/23/17
UBSW
06/23/17
NO CHANGE
Target $31
UBSW
Sell
Hain Celestial guidance seems overly ambitious, says UBS
UBS analyst Steven Strycula noted Hain Celestial (HAIN) management was upbeat following Q3 earnings but feels guidance was overly ambitious, which overshadowed pockets of favorable changes. The analyst said questions remain regarding price gaps, rising private label mix within organic categories, and the implications from the merger of Amazon (AMZN) and Whole Foods (WFM). Strycula reiterated his Sell rating and lowered his price target to $31 from $33 on Hain Celestial shares.
06/22/17
JPMS
06/22/17
NO CHANGE
JPMS
JPMorgan has 'hard time' seeing bidder topping Amazon deal for Whole Foods
Noting that Whole Foods (WFM) shares continue to trade above Amazon's (AMZN) agreed upon buying price of $42 per share, and that at least two other firm's raised their price targets above the deal price, JPMorgan's analyst team of Ken Goldman, Chris Horvers, and Doug Anmuth discussed their views on whether another strategic bidder is likely to top Amazon's takeover price with a rival bid. They have a "hard time seeing" Kroger (KR), Costco (COST), or Target (TGT) doing so, and while acknowledging that Wal-Mart (WMT) could make a bid, they think that its chance to beat out Amazon appears low and that Wal-Mart's primary opportunity is online, not grocery. The team concludes that they "don't believe a serious bid comes out of Bentonville that wouldn't be countered."
WFM Whole Foods
$43.20

-0.06 (-0.14%)

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ESV

Ensco

$4.20

-0.085 (-1.99%)

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  • 05

    Oct

ESPR

Esperion

$44.74

-0.24 (-0.53%)

13:45
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KKR

KKR

$18.12

-0.02 (-0.11%)

13:45
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Options
KKR call volume above normal and directionally bullish »

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JNJ

Johnson & Johnson

$133.44

0.805 (0.61%)

13:35
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  • 26

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FJTSY

Fujitsu

$37.70

0.25 (0.67%)

, LNVGY

Lenovo

$11.52

-0.36 (-3.03%)

13:34
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Periodicals
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FJTSY

Fujitsu

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LNVGY

Lenovo

$11.52

-0.36 (-3.03%)

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ILMN

Illumina

$189.32

-1.88 (-0.98%)

13:25
08/21/17
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13:25
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Illumina call volume above normal and directionally bullish »

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MDT

Medtronic

$83.85

0.441 (0.53%)

, COTY

Coty

$19.39

0.155 (0.81%)

13:23
08/21/17
08/21
13:23
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13:23
Earnings
Notable companies reporting before tomorrow's open »

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MDT

Medtronic

$83.85

0.441 (0.53%)

COTY

Coty

$19.39

0.155 (0.81%)

TOL

Toll Brothers

$38.29

0.14 (0.37%)

DSW

DSW

$15.74

-0.1 (-0.63%)

03/08/13
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  • 22

    Aug

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    Aug

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    Aug

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    Sep

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    Sep

ZAYO

Zayo Group

$32.88

-0.17 (-0.51%)

, NDSN

Nordson

$124.13

-1.37 (-1.09%)

13:22
08/21/17
08/21
13:22
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13:22
Earnings
Notable companies reporting after market close »

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ZAYO

Zayo Group

$32.88

-0.17 (-0.51%)

NDSN

Nordson

$124.13

-1.37 (-1.09%)

PINC

Premier

$32.94

-0.15 (-0.45%)

03/08/13
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03/06/13
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03/06/13
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  • 21

    Aug

  • 21

    Aug

  • 22

    Aug

  • 06

    Sep

$NSD

NASDAQ Market Internals

13:17
08/21/17
08/21
13:17
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13:17
Technical Analysis
NASDAQ market internals summary »

Volume is average for…

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HRZN

Horizon Technology

$10.27

-0.23 (-2.19%)

13:16
08/21/17
08/21
13:16
08/21/17
13:16
Upgrade
Horizon Technology rating change  »

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$NYE

NYSE Market Internals

13:16
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08/21
13:16
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13:16
Technical Analysis
NYSE market internals summary »

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SHLD

Sears

$8.65

0.45 (5.49%)

13:15
08/21/17
08/21
13:15
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13:15
Options
Sears put volume heavy and directionally bearish »

Bearish flow noted in…

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F

Ford

$10.64

0.0763 (0.72%)

13:13
08/21/17
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Periodicals
Union votes in favor of strike action at Ford Bridgend plant, Wales Online says »

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FL

Foot Locker

$32.31

-2.0701 (-6.02%)

13:11
08/21/17
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13:11
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13:11
Technical Analysis
Technical View: Foot Locker at new 52-week and multi-year lows »

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CENX

Century Aluminum

$15.01

0.19 (1.28%)

13:09
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TOSBF

Toshiba, also use TOSYY

$2.69

-0.052 (-1.90%)

, TOSYY

Toshiba, also use TOSBF

$16.05

-0.32 (-1.95%)

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Toshiba, also use TOSYY

$2.69

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Toshiba, also use TOSBF

$16.05

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WDC

Western Digital

$83.20

0.72 (0.87%)

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JCI

Johnson Controls

$37.86

0.81 (2.19%)

13:06
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NWL

Newell Brands

$48.44

-1.22 (-2.46%)

13:05
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Options
Newell Brands call volume above normal and directionally bullish »

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MLAB

Mesa Labs

$129.98

-0.57 (-0.44%)

12:56
08/21/17
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Mesa Labs director Stuart Campbell sells 2,000 shares »

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  • 28

    Sep

CSIQ

Canadian Solar

$16.63

0.23 (1.40%)

12:55
08/21/17
08/21
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12:55
Options
Canadian Solar put volume heavy and directionally bearish »

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ENRJ

EnerJex Resources

$0.28

-0.023 (-7.54%)

12:55
08/21/17
08/21
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12:55
Hot Stocks
Breaking Hot Stocks news story on EnerJex Resources »

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ENRJ

EnerJex Resources

$0.28

-0.023 (-7.54%)

12:46
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P

Pandora

$8.11

-0.16 (-1.93%)

, AAPL

Apple

$157.50

-0.36 (-0.23%)

12:45
08/21/17
08/21
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12:45
Periodicals
SEC reviewing Spotify's plan to skip IPO in NYSE listing, Bloomberg says »

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P

Pandora

$8.11

-0.16 (-1.93%)

AAPL

Apple

$157.50

-0.36 (-0.23%)

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  • 23

    Aug

  • 24

    Aug

  • 05

    Sep

COTY

Coty

$19.35

0.12 (0.62%)

12:45
08/21/17
08/21
12:45
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12:45
Options
Coty call volume above normal and directionally bullish »

Bullish option flow…

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  • 22

    Aug

GPC

Genuine Parts

$82.19

0.59 (0.72%)

12:43
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08/21
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Hot Stocks
Genuine Parts elects Hardin as new independent director, adds 15M to repurchase »

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