Morgan Stanley analyst John Glass lowered the price target on Starbucks (NASDAQ: SBUX) to $117.00 (from $124.00) after the company reported 4Q results post close, roughly in line, but provided earnings guidance for FY22 that surprised to the downside on significant investments in labor as well as the impact of inflation.

The analyst reiterated an Equalweight rating, stating "SBUX is well known for investing ahead of the curve, but this round, which materially resets near term margin/EPS expectations, will test investors' mettle. We agree the payoff will be in better top line and market share, and ultimately accretive to earnings power, but here we cut numbers and PT."