03:09 PM EDT, 05/23/2024 (MT Newswires) -- Sysco ( SYY ) could beat and raise its guidance over time with its "solid, achievable plan" for sales and income growth for the next three years, UBS said in a note Thursday.

Sysco ( SYY ) told participants at its investor day that it was looking to increase sales by 4% to 6% and adjusted earnings per share by 6% to 8%, though investors believe the company did not set the earnings bar quite high enough, UBS said.

The firm said the company's scale in specialty gave it a "key competitive advantage" and its acquisitions of Greco and Edward Don "opened up a lot of potential from a cross-selling perspective."

UBS also said the company's approach to local sales growth "makes sense" as it hires more salespeople and shifts from a base pay compensation system to one that relies heavily on bonuses.

The firm further said that Sysco's ( SYY ) scale in countries abroad was "underappreciated" and that the company was growing faster in its international business relative to the US.

UBS has a buy rating for Sysco ( SYY ) with a price target of $87.

Price: 72.87, Change: +0.13, Percent Change: +0.19