Starbucks Ailed By Slower Top-line, Stiff Competition: Analyst Cuts Forecast
Portfolio Pulse from Nabaparna Bhattacharya
Guggenheim analyst Gregory Francfort downgraded Starbucks' price target to $100 from $101, maintaining a Neutral rating. The downgrade follows Starbucks' Q1 revenue of $9.4 billion, missing estimates of $9.59 billion, and earnings per share of 90 cents, below the expected 93 cents. Francfort cited increased U.S. competition and slower top-line growth as reasons for lowering the 2024 adjusted EPS forecast to $4.00 from $4.05. Despite this, Starbucks shares are considered not particularly expensive at 23x C'24 EPS.
February 01, 2024 | 7:31 pm
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Starbucks' price target was lowered to $100 from $101 by Guggenheim analyst Gregory Francfort, who cited slower revenue growth and increased competition. The company's Q1 revenue and EPS missed estimates, leading to a reduced 2024 EPS forecast.
The downgrade in Starbucks' price target and the reduced EPS forecast for 2024 are likely to negatively impact investor sentiment in the short term. The missed Q1 revenue and EPS estimates, coupled with concerns over increased competition and slower growth, suggest potential downward pressure on the stock price.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100