Starbucks Faces Competitive Pressure In China: Analyst Downgrades Stock
Portfolio Pulse from Shivani Kumaresan
TD Cowen analyst Andrew M. Charles has downgraded Starbucks Corp (NASDAQ:SBUX) from Outperform to Market Perform and lowered the price target from $117 to $107. The downgrade is due to increasing concerns about Starbucks' performance in China, which is expected to account for 16% of 2025E EBIT. The analyst sees the risk that China headwinds are likely to get stronger rather than weaker, and highlighted low-priced competition that is gaining share, with aggressive discounts that are poised to persist for the next 2+ years.
September 19, 2023 | 5:06 pm
News sentiment analysis
Sort by:
Descending
NEGATIVE IMPACT
Starbucks Corp (NASDAQ:SBUX) has been downgraded by TD Cowen analyst Andrew M. Charles due to concerns about its performance in China and growing competition. The price target has been lowered from $117 to $107.
The downgrade of Starbucks Corp by TD Cowen analyst Andrew M. Charles is due to concerns about its performance in China, which is expected to account for 16% of 2025E EBIT. The analyst sees the risk that China headwinds are likely to get stronger rather than weaker, and highlighted low-priced competition that is gaining share, with aggressive discounts that are poised to persist for the next 2+ years. This could negatively impact Starbucks' stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100