Sysco's (SYY) momentum in fiscal Q3 remained intact as the company pushed back on concerns that its pending Jetro Restaurant Depot acquisition would require a costly overhaul, UBS Securities said Wednesday in a report.

UBS said Sysco continued to post steady operational gains in the period, including its strongest US growth in case shipments to independent restaurants since Q3 2023. Questions around Restaurant Depot's condition may linger, though Sysco's third-party inspections of more than 160 stores helped ease investor concerns, the report said.

International results also improved, and UBS expects that business to keep benefiting from supply-chain and private-label investments. Still, higher energy costs in Europe could pressure consumers if the Middle East conflict drags on, the report said.

UBS maintained its buy rating on Sysco stock with a price target of $90.

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