Starbucks falls as analysts weigh in on cautious guidance

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.