Starbucks "neutral"

08.01.08 - Robert W. Baird

NEW YORK, January 8 (newratings.com) - Analysts at Robert W Baird maintain their "neutral" rating on Starbucks Corp (SBUX). The target price is set to $24.

In a research note published this morning, the analysts mention that the company has announced new strategic initiatives involving steps to improve its US business, while accelerating unit growth outside the US. The analysts believe that this shift in development would enable Starbucks to expand in the less penetrated markets, while reducing the operational strain related to domestic expansion. Although the company?s shares are expected to rebound in the short term, the overall sentiment is expected to remain cautious, as the company implements the planned changes, Robert W Baird says.