Starbucks (SBUX) Falls on Downgrade
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Shares of Starbucks (Nasdaq: SBUX) have hit a new 52-week low today, falling to $20.54 in the afternoon trading session. Starbucks stock is down more than $0.70, or about 3.5%, on an analyst downgrade.
RBC Capital lowered the stock's investment rating from Outperform to Sector Perform and also reduced its price target on the Company from $26 to $22. The firm said Starbucks will likely continue to see downward sales and earnings pressure as a result of an "overly aggressive unit expansion strategy in the U.S."
Additionally, RBC said it expects Starbucks' macro environment to remain weak, further depressing such factors as same-store sales growth.
Starbucks Corporation engages in the purchase, roasting, and sale of whole bean coffees worldwide.
RBC Capital lowered the stock's investment rating from Outperform to Sector Perform and also reduced its price target on the Company from $26 to $22. The firm said Starbucks will likely continue to see downward sales and earnings pressure as a result of an "overly aggressive unit expansion strategy in the U.S."
Additionally, RBC said it expects Starbucks' macro environment to remain weak, further depressing such factors as same-store sales growth.
Starbucks Corporation engages in the purchase, roasting, and sale of whole bean coffees worldwide.
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