The Wall Street firm downgraded its rating on the stock and slashed its price target, believing that uncertainty in the near term is high.
Starbucks shares may be due for some downside, according to Jefferies. Analyst Andy Barish downgraded the stock to underperform from hold and cut its price target by $4 to $76. That implies more than 20% downside from Monday's close.
mountain 2024-08-13 since CEO change "We find this gain to be too much too soon when very little is known about Mr. Niccol's plans so early in his tenure, which just began weeks ago," the analyst wrote in a Tuesday note. "We find the culture, human capital and market positioning of the brand as challenged, and this turn, given its size, complexity and global scale , will take a significant amount of time and investment, in our view." Barish expects there to be low visibility in China and the U.S. in the near term and sees fiscal 2025 guidance coming in lower than expected. He also thinks that the long-term growth algorithm should be revised lower as well.
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