Starbucks (NASDAQ:SBUX – Get Rating) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Friday, Zacks.com reports. They presently have a $83.00 price target on the coffee company’s stock. Zacks Investment Research‘s price objective points to a potential upside of 5.73% from the company’s current price.
According to Zacks, “Although shares of Starbucks have underperformed the industry in the past six months, it might take a U-turn as the company is benefiting from store growth, robust digitalization and comps growth. During first-quarter fiscal 2022, global comparable store sales increased 13% year over year, driven by an increase in comparable transactions and average ticket growth. For fiscal 2022, the company anticipates global comparable sales to reach high-single digits. Starbucks expects to open nearly 2,000 net new stores worldwide in fiscal 2022. However, dismal China performance continues to hurt Starbucks. During the fiscal first quarter, comps in China declined 14% year over year against a 5% growth reported in the prior-year quarter. Strategic investments and cost inflation might impact the company’s earnings in 2022.”
SBUX has been the subject of several other research reports. BTIG Research decreased their price target on Starbucks from $130.00 to $110.00 and set a “buy” rating for the company in a research note on Wednesday. Wedbush lowered Starbucks from an “outperform” rating to a “neutral” rating and cut their price objective for the stock from $105.00 to $91.00 in a report on Tuesday, April 5th. Citigroup lowered Starbucks from a “buy” rating to a “neutral” rating and cut their price objective for the stock from $120.00 to $91.00 in a report on Monday, April 11th. MKM Partners cut their price objective on Starbucks from $115.00 to $105.00 and set a “buy” rating for the company in a report on Wednesday. Finally, Evercore ISI cut their price target on Starbucks from $120.00 to $115.00 and set an “inline” rating for the company in a report on Wednesday, February 2nd. One research analyst has rated the stock with a sell rating, fourteen have assigned a hold rating and twelve have given a buy rating to the company’s stock. According to data from MarketBeat, Starbucks currently has a consensus rating of “Hold” and a consensus target price of $109.35.
Starbucks (NASDAQ:SBUX – Get Rating) last announced its earnings results on Tuesday, February 1st. The coffee company reported $0.72 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.80 by ($0.08). Starbucks had a net margin of 14.47% and a negative return on equity of 56.17%. The business had revenue of $8.05 billion for the quarter, compared to the consensus estimate of $7.95 billion. During the same period in the prior year, the business posted $0.61 EPS. Starbucks’s revenue for the quarter was up 19.3% on a year-over-year basis. Analysts forecast that Starbucks will post 3.31 earnings per share for the current year.
A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Carl P. Sherr & Co. LLC boosted its position in Starbucks by 0.4% during the 3rd quarter. Carl P. Sherr & Co. LLC now owns 20,692 shares of the coffee company’s stock valued at $2,283,000 after acquiring an additional 91 shares in the last quarter. Beese Fulmer Investment Management Inc. boosted its position in Starbucks by 5.2% during the 4th quarter. Beese Fulmer Investment Management Inc. now owns 2,003 shares of the coffee company’s stock valued at $234,000 after acquiring an additional 99 shares in the last quarter. Horrell Capital Management Inc. boosted its position in Starbucks by 0.3% during the 3rd quarter. Horrell Capital Management Inc. now owns 29,497 shares of the coffee company’s stock valued at $3,254,000 after acquiring an additional 100 shares in the last quarter. Mitchell & Pahl Private Wealth LLC boosted its position in Starbucks by 2.1% during the 3rd quarter. Mitchell & Pahl Private Wealth LLC now owns 5,023 shares of the coffee company’s stock valued at $554,000 after acquiring an additional 104 shares in the last quarter. Finally, Bellwether Advisors LLC boosted its position in Starbucks by 10.7% during the 3rd quarter. Bellwether Advisors LLC now owns 1,082 shares of the coffee company’s stock valued at $119,000 after acquiring an additional 105 shares in the last quarter. 69.74% of the stock is currently owned by institutional investors and hedge funds.
About Starbucks (Get Rating)
Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of specialty coffee worldwide. The company operates through three segments: North America, International, and Channel Development. Its stores offer coffee and tea beverages, roasted whole beans and ground coffees, single serve products, and ready-to-drink beverages; and various food products, such as pastries, breakfast sandwiches, and lunch items.
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