SYY - Performance Foods sell-off overdone though Core-Mark not what investors wanted analyst says

Performance Food's (PFGC) 6% selloff in the wake of its planned purchase of Core-Mark Holdings (CORE) appears to be overdone, though it's "not exactly what most people wanted," according to Wells Fargo. Core-Mark gained 6.9%.Core-Mark appears to be a "lower-quality" asset compared to core's broadline business and initial accretion from the purchase looks to be "just okay," Wells Fargo analyst Edward Kelly (PGFC overweight, PT $66) wrote earlier.Recommended to buy on weakness as the CEO has a "tremendous track record" and the company is "poised to beat numbers" this quarter, according to Kelly.Separately, Morgan Stanley analyst John Glass wrote that Core-Mark is a "good" business, though its not what investors were hoping for now.  Investors likely wanted the company to acquire a broadline business so PFGC could be more competitive with Sysco (SYY) and US Foods (USFD). In addition investors may fear that CORE could be dilutive to PFGC's growth rate, according

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Performance Foods sell-off overdone, though Core-Mark not what investors wanted, analyst says