Starbucks "neutral," target price reduced

31.07.08 - Robert W. Baird

NEW YORK, July 31 (newratings.com) - Analysts at Robert W Baird maintain their "neutral" rating on Starbucks Corporation (SBUX), while reducing their estimates for the company. The target price has been reduced from $18 to $17.

In a research note published this morning, the analysts mention that the company has reported its 3Q core EPS short of the estimates and the consensus. Starbucks? same-store sales were weak in the quarter, and the company witnessed rising weakness in its international markets, the analysts say. The macroeconomic factors might adversely impact the company?s progress on the US traffic improvement going forward, Robert W Baird adds. The EPS estimates for FY08 and FY09 have been reduced from $0.82 to $0.70 and from $0.92 to $0.90, respectively.