Jefferies Financial Group Downgrades Starbucks (NASDAQ:SBUX) to Underperform

Starbucks (NASDAQ:SBUX) was downgraded by equities research analysts at Jefferies Financial Group from a “hold” rating to an “underperform” rating in a research report issued on Thursday, Marketbeat.com reports. They currently have a $76.00 target price on the coffee company’s stock. Jefferies Financial Group’s target price points to a potential downside of 18.98% from the company’s current price.

Several other analysts have also recently issued reports on the company. CICC Research began coverage on Starbucks in a report on Monday, June 30th. They issued an “outperform” rating and a $100.00 target price for the company. The Goldman Sachs Group restated a “neutral” rating and issued a $95.00 target price (up from $85.00) on shares of Starbucks in a report on Thursday, June 12th. Robert W. Baird restated a “neutral” rating and issued a $85.00 target price (down from $114.00) on shares of Starbucks in a report on Monday, April 7th. JPMorgan Chase & Co. lowered their price target on Starbucks from $105.00 to $100.00 and set an “overweight” rating for the company in a report on Wednesday, April 30th. Finally, Cowen reiterated a “hold” rating on shares of Starbucks in a report on Tuesday, June 24th. Four investment analysts have rated the stock with a sell rating, eleven have assigned a hold rating and fifteen have given a buy rating to the stock. According to data from MarketBeat, Starbucks presently has an average rating of “Hold” and a consensus price target of $98.58.

Starbucks Price Performance

SBUX opened at $93.80 on Thursday. The business’s 50-day moving average is $90.22 and its two-hundred day moving average is $94.56. Starbucks has a 1 year low of $72.73 and a 1 year high of $117.46. The firm has a market capitalization of $106.59 billion, a PE ratio of 33.99, a price-to-earnings-growth ratio of 4.71 and a beta of 1.02.

Starbucks (NASDAQ:SBUX) last released its earnings results on Tuesday, April 29th. The coffee company reported $0.41 EPS for the quarter, missing analysts’ consensus estimates of $0.51 by ($0.10). Starbucks had a negative return on equity of 42.14% and a net margin of 8.61%. The firm had revenue of $8.76 billion for the quarter, compared to analyst estimates of $8.90 billion. During the same period last year, the firm earned $0.68 EPS. The company’s revenue for the quarter was up 2.3% compared to the same quarter last year. As a group, sell-side analysts expect that Starbucks will post 2.99 EPS for the current year.

Hedge Funds Weigh In On Starbucks

Several institutional investors have recently made changes to their positions in the stock. University of Texas Texas AM Investment Management Co. bought a new stake in shares of Starbucks during the fourth quarter worth about $25,000. Graney & King LLC bought a new stake in shares of Starbucks during the fourth quarter worth about $26,000. Chelsea Counsel Co. bought a new stake in shares of Starbucks during the second quarter worth about $26,000. Runnymede Capital Advisors Inc. bought a new stake in shares of Starbucks during the fourth quarter worth about $27,000. Finally, Hughes Financial Services LLC bought a new stake in shares of Starbucks during the first quarter worth about $27,000. Institutional investors and hedge funds own 72.29% of the company’s stock.

About Starbucks

Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of 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.