- Shares of Starbucks Corporation (NASDAQ:SBUX) received a price target of $91 from Wedbush. These are the details.
Shares of Starbucks Corporation (NASDAQ:SBUX) received a price target of $91 from Wedbush. And Wedbush analyst Nick Setyan adjusted the company’s rating from “Outperform” to “Neutral.”
Setyan adjusted the rating as he is no longer convinced that a return to double-digit EPS growth in fiscal 2023 is not in jeopardy, especially with the end of buybacks and a signal from management. indicating that significant additional investments could be forthcoming. Last month, Setyan cut estimates and noted that Starbucks could miss its forecast.
“We also felt that meaningful ongoing buyouts would cushion the blow of the additional investments needed as Howard Schultz grapples with various headwinds at Starbucks. We are now removing $2 billion in buybacks from our 2H:FY22 estimates and $3.6 billion from our FY23 estimates,” Setyan wrote in a research note.
But Setyan believes the valuation largely priced in the risks ahead and that a lack of near-term catalysts meant he was moving on the sidelines.
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