Starbucks downgraded to "peer perform" - update

02.01.08 - Bear Stearns

NEW YORK, January 2 (newratings.com) - Analyst Joseph Buckley of Bear Stearns downgrades Starbucks Corp (SBUX) from "outperform" to "peer perform."

In a research note published this morning, the analyst mentions that the company is likely to continue to face the issues that adversely affected its performance in 2007. Starbucks? margins are expected to remain under pressure in the forthcoming couple of quarters due to high dairy costs, the analyst says. Bear Stearns expects the company to reduce its guidance in the foreseeable future.