12:15 AM EDT, 05/02/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We cut our 12-month target to $77 from $102, 21.2x our FY 24 (Sep.) EPS, below SBUX's 5-year average forward P/E of 35.8x, reflecting revenue growth risks. We cut our 2024 EPS to $3.64 from $4.04 and 2025's to $4.10 from $4.65. SBUX posted FQ2 (Mar-Q) EPS of $0.68, $0.12 below consensus. Revenue of $8,563M (-1.8% Y/Y) was $594M below consensus. Operating income rose 11.7% Y/Y to $1,098M vs. $1,312M consensus, with margin tightening 150 bps Y/Y to 12.8%. SBUX cuts FY 24 guidance, as comp sales fell 3% in North America (-7% comp transactions) and 11% in China (-8% comp average ticket). We also note that the drop in customer traffic was steepest among occasional customers. Meanwhile, in China, SBUX still faces intense price competition. Despite the recent share price correction and our favorable view of SBUX's operational efficiencies, we remain cautious given the headwinds facing sales growth. Moreover, we think the benefits from its app becoming accessible to non-loyalty members could underwhelm investors.