Jefferies downgraded Starbucks to Underperform from Hold with a price target of $76, down from $80. While the new CEO “suggests necessary strategic change is now on the table,” the company’s execution will be challenged as issues like operations, culture, value perception and technology take time to fix, the analyst tells investors in a research note. The firm expects Starbucks’ fiscal 2025 guidance to be reset to low-single-digit earnings growth, with the consensus at 11%-12%, to disappoint investors, and sees ongoing negative same-store-sales weighing on the stock’s multiple. Jefferies sees 20% potential downside in the shares.
previous post