Deutsche Bank analyst Brian Mullan downgraded Starbucks to Hold from Buy with a price target of $106, up from $100. The analyst is making a risk/reward and valuation call on the shares, saying “there is not much more to it than that.” He is “truly neutral at current levels; neither positive nor negative.” A bull case could emerge for $5 per share in adjusted earnings per share, equating to a $125 stock price over time, but the “offsetting risk here is of course that the potential U.S. recession dynamic has not gone away,” Mullan tells investors in a research note.
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