Starbucks (SBUX) Stock: $91 Price Target From Wedbush

By Amit Chowdhry ● Apr 9, 2022
  • The shares of Starbucks Corporation (NASDAQ: SBUX) have received a $91 price target from Wedbush. These are the details.

The shares of Starbucks Corporation (NASDAQ: SBUX) have received a $91 price target from Wedbush. And Wedbush analyst Nick Setyan adjusted the rating on the company from “Outperform” to “Neutral.” 

Setyan adjusted the rating as he no longer has a high conviction that a return to low double digits EPS growth in fiscal 2023 is not at risk, particularly with the termination of repurchases and a signal from management that meaningful incremental investments may be ahead. Last month, Setyan reduced the estimates and noted that Starbucks could miss its guidance.

“We also felt meaningful ongoing repurchases would cushion the blow from necessary incremental investments as Howard Schultz addressed Starbucks’ various headwinds. We now remove $2B of repurchases from our 2H: FY22 estimates and $3.6B from our FY23 estimates,” wrote Setyan in a research note.

But Setyan believes that the valuation largely incorporates the risks ahead and a lack of near-term catalysts means that he is moving to the sidelines.

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