Starbucks Coffee (SBUX): Cutting PT But Near Term SSS Looks Strong - RBC

October 19, 2016 6:51 AM EDT
Get Alerts SBUX Hot Sheet
Price: $57.66 -0.4%

Rating Summary:
    28 Buy, 8 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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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%.

For an analyst ratings summary and ratings history on Starbucks click here. For more ratings news on Starbucks click here.

Shares of Starbucks closed at $52.61 yesterday.

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