- The shares of Starbucks Corporation (NASDAQ: SBUX) have received a $115 price target from BMO Capital. These are the details.
The shares of Starbucks Corporation (NASDAQ: SBUX) have received a $115 price target from BMO Capital. And BMO Capital analyst Andrew Strelzik is maintaining an “Outperform” rating on the shares.
The rating was adjusted as Strelzik lowered the EPS estimates for the suspended buyback.
“In conjunction with Howard Schultz returning as interim CEO yesterday, SBUX announced the suspension of its share repurchase program to allow for greater investment in employees and stores,” wrote Strelzik in a research note. “While the move is a surprise, we do not believe it is indicative of meaningful long-term fundamental issues, but rather a reprioritization of resources as Mr. Schultz works to improve employee relations. We remove share repurchases from our forward estimates and lower our target to $115, but believe risk/reward skews favorably and remain positive on longer-term fundamentals.”
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