Starbucks Coffee (SBUX): Cutting PT But Near Term SSS Looks Strong - RBC
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RBC Capital analyst, David Palmer, reiterated his Outperform rating on shares of Starbucks (NASDAQ: SBUX) but cut his price target to $64 from $68. Despite cutting the price target on slightly lower SSS growth estimates in FY17, he is retaining his 5% SSS estimate for F4Q16 due to results from a proprietary consumer panel which implies 4-6% SSS growth near term.
In short, the analyst sees the company as a good risk/reward at 25x projected FY17 EPS with a PEG ratio of ~1.5x on long-term growth of 17%.
Shares of Starbucks closed at $52.61 yesterday.
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