Starbucks has faced widespread skepticism from analysts following its disappointing quarterly performance. Multiple analysts, including those from William Blair, Deutsche Bank, and JPMorgan, have downgraded the stock and reduced their price targets. The company’s earnings and revenue missed analyst estimates, driven by a surprising decline in same-store sales. Additionally, Starbucks lowered its fiscal 2024 earnings and revenue forecast, indicating that the underperformance is expected to persist for several quarters. William Blair analyst Sharon Zackfia downgraded the stock to market perform with a price target of $73, implying a potential 17.5% decline from its recent close. Deutsche Bank also downgraded the stock to hold, citing limited visibility into the pace of recovery. JPMorgan analyst John Ivankoe lowered his price target to $92 but maintained an overweight rating. Several other firms, including Wells Fargo, UBS, and Bank of America, also cut their price targets but maintained more bullish stances on the stock. These downgrades and price target cuts reflect the growing concerns among analysts about Starbucks’ ability to navigate the current headwinds and regain its previous growth trajectory.
Starbucks’ Performance Slumps: Analysts Downgrade and Cut Price Targets
