RBC Capital Reiterates Outperform on Starbucks Coffee (SBUX) After Trimming Estimates
RBC Capital reiterated an Outperform rating and $68.00 price target on Starbucks Coffee (NASDAQ: SBUX) following the company's 3Q. Estimates were cut to account for labor investments and a slowing tailwind from input costs.
Analyst David Palmer commented, "We are maintaining our FY16 EPS but trimming our FY17 EPS estimate to account for labor investments and a diminishing tailwind from input costs. We remain confident Americas SSS growth will return to 5% in F4Q, but difficult comparisons could mean a chance of another sub-5% comp as early as the December quarter."
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Shares of Starbucks closed at $57.60 yesterday.