Starbucks: Jefferies downgrades to sell

(CercleFinance.com) - On Tuesday Jefferies downgraded Starbucks shares from 'hold' to 'underperform', with a target price reduced from $80 to $76.


While many investors are optimistic about the strategic shift ahead with the arrival of the new CEO, we believe the market's enthusiasm is overdone in light of existing operational difficulties, corporate culture and values issues, as well as concerns surrounding technology investments, all of which will take time to resolve, the analyst explains.

The broker adds that weakening demand in both the US and China is jeopardizing the achievement of its 2025 forecasts, leading it to reduce its targets.

While the consensus now targets EPS of $3.95 for FY 2025, Jefferies says it only expects $3.65 itself.


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