Why Starbucks 'Sentiment Seems Poor' Ahead Of Q1 Earnings
Portfolio Pulse from Surbhi Jain
Ahead of its Q1 earnings report on Jan. 30, Starbucks Corp (NASDAQ:SBUX) faces mixed sentiments from analysts due to past inflationary pressures and technical indicators showing negative volume pressure. Piper Sandler analyst Brian Mullan has downgraded the price target from $107 to $100 while maintaining a Neutral rating. Concerns include U.S. consumer and restaurant industry traffic, uncertainty in Starbucks' China business, and future same-store sales trends. Despite these challenges, the company's valuation is seen as favorable, and cost-saving initiatives may help achieve adjusted EPS guidance for fiscal 2024.
January 19, 2024 | 6:05 pm
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NEUTRAL IMPACT
Starbucks Corp faces mixed analyst sentiments and a downgraded price target ahead of Q1 earnings, with concerns about consumer traffic and China operations, despite favorable valuation and cost-saving efforts.
The Neutral rating and price target reduction by Piper Sandler suggest that while there are concerns about Starbucks' near-term performance, the company's valuation and cost-saving measures provide some positive aspects. The mixed technical indicators and analyst sentiments indicate uncertainty, which could lead to a neutral short-term impact on the stock price.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100