FINWIRES · TerminalLIVE
FINWIRES

Research Alert: CFRA Reiterates Sell Opinion On Shares Of Starbucks Corporation

By

-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our price target by $8 to $82, 30x our FY 27 (Sep.) EPS estimate and in line with its 10-year average forward multiple. We raise our FY 26 estimate to $2.26 from $2.21 and FY 27's to $2.74 from $2.64. Following FQ2 results that showed strong global comp growth acceleration to 6.2% (+710 bps), we reiterate our Sell opinion. Shares trade at 30x forward earnings, in line with their long-term average, suggesting the market expects this momentum through FY 27. Our model assumes SBUX meets its 5% global comp growth goal in FY 26, with margin expansion due to waning store investment costs, lower interest expenses, and improved international segment margins from the Boyu Capital China joint venture. We believe it will be difficult to sustain operating margin improvement on comp growth alone, with new store growth of just 0.8% in FQ3 potentially not inflecting higher until FY 28. At current valuation levels reflecting optimistic assumptions, we see limited upside and maintain our Sell rating.

Related Articles

Asia

CGN Power's Q1 Profit Drops 9% on Lower Revenue

CGN Power (HKG:1816, SHE:003816) posted a 9% drop in attributable profit in the first quarter to 2.74 billion yuan from 3.02 billion yuan, according to filings with the Hong Kong and Shanghai bourses late Tuesday.Earnings per share edged down to 0.052 yuan from 0.060 yuan.Revenue plunged 13% to 16.3 billion yuan from 18.8 billion yuan, the nuclear power operator said.

$HKG:1816$SHE:003816
Asia

Metal Powder Works' Metal Powder Machine Achieves Annual Capacity of 100 Metric Tonnes; Shares Up 10%

Metal Powder Works' (ASX:MPW) NextGen machine achieved sustained annual production capacity of 100 metric tonnes, with an in-specification saleable yield surpassing 95%, according to a Wednesday filing with the Australian bourse.NextGen is designed for industrial-scale manufacturing of non-thermal, solid-state metal powders.The company plans to achieve 800 metric tonnes of installed capacity by 2028, which is estimated to require total capital outlay of about $2 million, the filing said.Shares rose 10% in morning trade on Wednesday.

$ASX:MPW
Asia

China Pacific Insurance's Q1 Profit Rises 4%; Revenue Down 1%

China Pacific Insurance (SHA:601601, HKG:2601) reported a 4% increase in net profit in the first quarter to 10 billion yuan from 9.6 billion yuan, according to filings with the Hong Kong and Shanghai bourses late Tuesday.Earnings per share fell to 0.94 yuan from 1 yuan.Revenue fell 1.2% to 92.5 billion yuan from 93.7 billion yuan, the insurer said.

$HKG:2601$SHA:601601