UPDATE: Atlantic Equities Downgrades Starbucks (SBUX) to Neutral

Atlantic Equities analyst Edward Lewis downgraded Starbucks (NASDAQ: SBUX) from Overweight to Neutral with a price target of $105.00.

The analyst comments "Shares in Starbucks have enjoyed a strong absolute and relative run as the company has bounced back strongly from the depths of the pandemic. In FY21, not only have comps in China and the US returned to positive territory but margins also recovered back to historic levels in line with company expectations. However, as we look out in the near term, we remain concerned that momentum at the business may be slowing more than the market might have anticipated with comps set to return to negative territory in China and rising labour cost inflation weighing on US growth. With shares already reflecting a healthy 60%+ premium to the market, we prefer to take a step back and move Neutral with a $105 price target."

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 $112.17 yesterday.

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