Starbucks: UBS cuts target price after results.
(CercleFinance.com) - Investment bank UBS has cut its target price for the Starbucks stock from 56 dollars to 54 dollars after the world's largest coffee chain reported quarterly results last night.
UBS thinks that the company's guidance appears optimistic, considering that US trends have been on a decelerating path for around two years, and that the restaurant/retail backdrop remains "challenging."
"Most of our investor conversations last night suggested concerns around the feasibility of guidance, particularly for full-year 2018," UBS pointed out.
While the broker acknowledges that a more aggressive capital return program could help support the story, the share buybacks could prove to be "poorly timed" if the company falls short of guidance later in the year, it warns in a research note issued today.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
UBS thinks that the company's guidance appears optimistic, considering that US trends have been on a decelerating path for around two years, and that the restaurant/retail backdrop remains "challenging."
"Most of our investor conversations last night suggested concerns around the feasibility of guidance, particularly for full-year 2018," UBS pointed out.
While the broker acknowledges that a more aggressive capital return program could help support the story, the share buybacks could prove to be "poorly timed" if the company falls short of guidance later in the year, it warns in a research note issued today.
Copyright (c) 2017 CercleFinance.com. All rights reserved.