Starbucks falls as analysts weigh in on cautious guidance

Oct. 29, 2021 7:03 AM ETStarbucks Corporation (SBUX)By: Clark Schultz, SA News Editor7 Comments

Starbucks cafe interior - empty cafeteria behind glass wall

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  • Starbucks (NASDAQ:SBUX) trades lower after earnings disappointing due largely to softness in China. Analysts are mixed in their reaction to the SBUX quarter.
  • Stifel cut its rating on Starbucks (SBUX) to Hold from Neutral, while Oppenheimer drops its price target to $130 and Cowen clips its PT to $125 due to the cautious guidance.
  • "While initial 2022 EPS guidance of $3.40+ trails $3.73 consensus, we highlight SBUX's conservative approach to financial planning & investor communication. We view guidance as a new floor for the company to beat, given SBUX is in a position of strength with pricing power and plans to front-end load ~$13B of share repurchases, aided by a $6.5B cash balance," updates analyst Andrew Charles.
  • Bank of America keeps a Buy rating and says it views the two-year comparable store sales mark of +14% from SBUX in September as particularly impressive given mobility and work patterns are not yet back to normal.
  • Shares of Starbucks are down 4.74% premarket to $107.83.
  • Read more about the Starbucks Q3 earnings report and guidance update.
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