Starbucks "buy," estimates reduced

24.07.07 - UBS

NEW YORK, July 24 (newratings.com) - Analysts at UBS reiterate their "buy" rating on Starbucks Corporation (SBUX), while reducing their estimates for the company. The target price is set to $42.

In a research note published this morning, the analysts mention that the company?s share price is expected to witness a steep rebound in the forthcoming three quarters, driven by the benefits of slowing company unit growth in the US. Slowing unit growth in the US is likely to result in accelerating same-store sales growth, improving ROIC, shareholder returns and EPS growth, the analysts add. The EPS estimate for 2007 has been reduced from $0.90 to $0.89.