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Research Alert: CFRA Keeps Sell Opinion On Shares Of Starbucks Corporation
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Research Alert: CFRA Keeps Sell Opinion On Shares Of Starbucks Corporation
Jul 29, 2025 10:39 PM

01:05 AM EDT, 07/30/2025 (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 raise our price target by $4 to $69, 27x our FY 26 (Sep.) EPS estimate, in line with its three-year average forward multiple. We cut our FY 25 EPS estimate to $2.22 (from $2.46) and raise FY 26's to $2.56 (from $2.48). Our slightly higher EPS estimates for FY 26 factor in a sustained traffic recovery in key regions like the U.S. and China along with operating margin expansion. However, our estimates still suggest a material EPS shortfall in FY 26, representing a 12% downside to the consensus. Wall Street expects 23.5% operating income growth in FY 26, which seems lofty given ongoing labor investments, store improvement capex, and an uncertain traffic recovery timeline. We feel there are still fundamental risks, such as potential macroeconomic headwinds and execution risk on multiple initiatives that require 12-18 months to show a measurable impact. Moreover, shares trade at 32x FY 26 EPS, a 10% premium to shares' 10-year historical averages. We keep our Sell rating, with the key risk being sluggish traffic.

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