Starbucks: Jefferies cuts target, says stock 'bottoming'

(CercleFinance.com) - Jefferies has cut its target price for Starbucks, while maintaining its "buy" recommendation on the stock, after last week's lower guidance and May's strategic alliance with Nestle.


In a note sent to clients, the US broker says that a transition is "clearly" taking place, with the Seattle-based coffee chain moving from visible growth to a choppier growth company with more total shareholder return characteristics, including a higher dividend, and buybacks.

"We admit that stock transitions are tough, but current valuation would seem to support a bottoming in the stock," Jefferies said in the report.


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