Starbucks dips as Jefferies turns bearish
** Shares of Starbucks SBUX.O down 0.4% at $95.07 premarket after Jefferies downgrades coffee chain to "underperform" from "hold"
** Brokerage cuts PT by $4 to $76, implying 20% downside to stock's Mon close
** "While the new CEO suggests necessary strategic change is now on the table, we believe execution will be challenged as issues like ops, culture, value perception and tech take time to fix," Jefferies wrote in note to clients
** Jefferies expects FY25 guidance reset to low-single-digit pct EPS growth (vs consensus at +11-12%), to disappoint, on ongoing negative same-store-sales in U.S. and International
** On Sept 10, CEO Brian Niccol laid out his plans for co a day after taking the helm, saying he would focus on reinvigorating coffeehouse culture at its stores in the U.S.
** SBUX closed at $77.03 on Aug 12, a day before Niccol was named CEO in surprise move. Stock off fractionally YTD through Mon
** Avg rating among 37 brokerages covering SBUX is "buy" and recommendation breakdown is 19 "strong buy" or "buy", 16 "hold" and 2 "strong sell", per LSEG
** Median PT of $96.50 up from $85 on Jun 24
(Lance Tupper is a Reuters market analyst. The views expressed are his own)
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