Starbucks: Jefferies maintains buy rating, cuts target price
(CercleFinance.com) - Jefferies reiterates its "buy" rating on Starbucks shares, having reduced its target price for them from 130 dollars to 100 dollars, after the company's quarterly results were pretty much in line with expectations, "as better US SSS offset softer China".
However, the broker has reduced its H2 estimates significantly, given rising labour expenditure, inflationary pressures in the US and a significantly lower contribution from China.
"We believe the next few qtrs will be challenged but set the stage for a growth rebound in F23 as a new CEO joins following Schultz's ~six-month interim status," the broker said.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
However, the broker has reduced its H2 estimates significantly, given rising labour expenditure, inflationary pressures in the US and a significantly lower contribution from China.
"We believe the next few qtrs will be challenged but set the stage for a growth rebound in F23 as a new CEO joins following Schultz's ~six-month interim status," the broker said.
Copyright (c) 2022 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.