Starbucks initiated with "neutral"

14.01.08 - Cowen and Company

NEW YORK, January 14 (newratings.com) - Analyst Colin Guheen of Cowen & Co initiates coverage of Starbucks Corporation (SBUX) with a "neutral" rating.

In a research note published this morning, the analyst mentions that the visibility into the company?s earnings continues to be low. Any near-term positive change in Starbucks? earnings/comp momentum is likely to be offset by disruption costs from the company?s US turnaround initiatives, the analyst says. Although the company?s International business has generated a consistent +5% comps growth for the last 16 quarters, the business, representing only 10% of profits, can do little to significantly improve the earnings visibility, Cowen & Co adds.