Starbucks "outperform," target price reduced

22.06.07 - Robert W. Baird

NEW YORK, June 22 (newratings.com) - Analysts at Robert W Baird maintain their "outperform" rating on Starbucks Corporation (SBUX), while reducing their estimates for the company. The target price has been reduced from $47 to $38.

In a research note published yesterday, the analysts mention that the company has indicated that it would find it difficult to meet its FY07 EPS guidance of $0.87-$0.89 in view of the increase in dairy costs and low US transaction growth. The EPS estimates for 3Q, 4Q, FY07 and FY08 have been reduced from $0.22 to $0.21, from $0.22 to $0.21, from $0.89 to $0.88 and from $1.09 to $1.08, respectively.