NEW YORK (TheStreet) -- Shares of Starbucks are falling after research firm Janney Capital cut its rating on the stock to Neutral from Buy, citing concerns about the company's sales outlook. WHAT'S NEW: Janney wrote that its concerns about Starbucks' near-term sales have increased. The firm reduced its same-store sales estimate for the coffee retailer's quarter which ends in December by one percentage point to 4%. On average, analysts estimate that Starbucks' same-store sales increased 5% during the December quarter. Additionally, Janney Capital believes that there are other restaurant stocks which can provide better returns than Starbucks in the near-term. The firm cut its price target on the stock to $80 from $85. Over the longer term, however, Janney Capital remains upbeat on the stock, as it still expects Starbucks to have the largest market cap among restaurant stocks by the end of 2025. WHAT'S NOTABLE: On December 20, Citigroup raised its price target on Starbucks to $97 from $91 and kept a Buy rating on the shares. The firm thinks that over the next few years, the company will see faster relative EPS growth and have higher return on invested capital and a healthier balance sheet than its peers. PRICE ACTION: In early trading, Starbucks fell 1.1% to $80.52. Reporting by Larry Ramer.
Click to view a price quote on SBUX. Click to research the Leisure industry.
from Latest TSC Headlines http://ift.tt/14dBSjI
No comments:
Post a Comment