Starbucks (SBUX) Falls on Downgrade

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.

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