02:34 PM EDT, 07/31/2024 (MT Newswires) -- Starbucks ( SBUX ) is still faced with downside risk to earnings after the coffee chain company maintained its full-year outlook, including EPS growth of flat to low-single-digits, Oppenheimer said Wednesday.

"Our updated analysis suggests risk remains to consensus EPS through 2025," Oppenheimer analysts Brian Bittner and Michael Tamas said. "We continue to see above-average downside earnings risk (vs. peers) without a significant acceleration in SSS or path for materially better margin performance into 2025."

The analysts said they are still on the hunt for signs that business trends have stabilized and earnings revisions have bottomed before reverting to a bullish stance. Oppenheimer reiterated its perform rating on the stock.

"A less cautious thesis requires an identifiable path for positive earnings revisions, but our analysis suggests Street's double-digit EPS growth estimate for fiscal '25 continues to hold above-average risk," they said.

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