Starbucks Corp (NASDAQ:SBUX) shares are trading lower Tuesday following bearish analyst coverage from Wedbush.
Wedbush analyst Nick Setyan downgraded Starbucks from an Outperform rating to a Neutral rating and lowered the price target from $105 to $91.
Setyan previously believed that Starbucks would return to low-double-digit earnings growth in 2023, but after management terminated the share repurchase program and signaled that incremental investments may be ahead, the analyst no longer has high conviction in Starbucks' earnings growth.
Although the Wedbush analyst continues to believe the current valuation is pricing in the risks ahead, a lack of catalysts for the "foreseeable future" has dampened Setyan's expectations.
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SBUX 52-Week Range: $78.92 - $126.32
The stock was down 3.52% at $84.99 at press time, according to data from Benzinga Pro.
Photo: sahinsezerdincer from Pixabay.
