Sysco shares worth 10 pct more-Barron's

NEW YORK Nov 29 (Reuters) - Shares in food distributor Sysco (SYY.N) are undervalued by about 10 percent, Barron's said in its Nov. 30 edition.

The report said Sysco has been cutting costs and was benefiting from strength in the fast-food business, which was more resistant to the economic downturn compared to other restaurants. Wall Street has not paid much notice, it said.

It also said Sysco shares, which closed on Friday at $26.83, were trading at around 14.7 times next year's projected earnings compared with their historic ratio of 20.

Sysco earlier this month posted an 18 percent rise in quarterly profit due to cost cuts, but its sales fell for the fourth consecutive quarter as it was hurt by food cost deflation. (Reporting by Ritsuko Ando, editing by Maureen Bavdek) ((ritsuko.ando@thomsonreuters.com; +1 646 223 6084; Reuters Messaging: ritsuko.ando.reuters.com@reuters.net))