Starbucks "neutral," target price reduced

11.11.08 - Robert W. Baird

NEW YORK, November 11 (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 $13 to $12.

In a research note published this morning, the analysts mention that the company has reported its 4Q pro forma EPS short of the estimates and the consensus due to same-store sales weakness. Starbucks expects its EPS to fall in the $0.71-$0.90 range if same-store sales decline by 2%-7%. The EPS estimate for FY09 has been reduced from $0.85 to $0.79.