Sysco rated Buy with 18% upside after transformative $29.1B Restaurant Depot deal boosts revenue and cash flow.

Sysco is rated a Buy due to a 19% stock pullback creating an attractive entry point and an 18% upside to consensus targets. The company's $29.1 billion acquisition of Restaurant Depot is transformative, adding 20% to revenue, 45% to EBITDA, and 55% to free cash flow, with rapid accretion expected. In Q3 FY26, Sysco saw its strongest U.S. local volume growth in three years, driving margin expansion and reinforcing operational momentum. Risks include regulatory scrutiny of the acquisition and increased leverage, but Sysco's 56 years of consecutive dividend growth and a 3% yield support its resilience as an investment.