TD Cowen analyst Andrew M. Charles downgraded the shares of Starbucks Corp (NASDAQ: SBUX) from Outperform to Market Perform and lowered the price target from $117 to $107.
The analyst noted an increasing investor narrative on China (~16% of 2025E EBIT), which is worrisome and is poised to persist, given parallels to Yum circa 2005 when China began a decade of dominating the investor focus. While pleased with Starbucks China's 3Q (June) performance, he sees the risk that China headwinds are likely to get stronger rather than weaker.
The analyst lowered 2024-25E China comparable sales to 14% & 5% from ...