{"id":77811,"date":"2024-03-13T03:43:29","date_gmt":"2024-03-13T08:43:29","guid":{"rendered":"https:\/\/equitynewsreport.com\/citi-trims-starbucks-shares-cites-growth-strategy-needs-for-bullish-shift\/"},"modified":"2024-03-13T03:43:29","modified_gmt":"2024-03-13T08:43:29","slug":"citi-trims-starbucks-shares-cites-growth-strategy-needs-for-bullish-shift","status":"publish","type":"post","link":"https:\/\/equitynewsreport.com\/h\/citi-trims-starbucks-shares-cites-growth-strategy-needs-for-bullish-shift\/","title":{"rendered":"Citi trims Starbucks shares, cites growth strategy needs for bullish shift"},"content":{"rendered":"<div readability=\"81\">\n<div id=\"imgCarousel\" class=\"imgCarousel\">\n<img decoding=\"async\" alt=\"Citi trims Starbucks shares, cites growth strategy needs for bullish shift\" id=\"carouselImage\" src=\"https:\/\/i-invdn-com.investing.com\/news\/LYNXNPEC3K0LD_L.jpg\"><br \/>\n<span class=\"text\">\u00a9 Reuters. <\/span><br \/>\n<i class=\"imgGrad\"><\/i>\n<\/div>\n<p>On Wednesday, Citi adjusted its outlook for Starbucks Corporation (NASDAQ:), reducing the coffee giant&#8217;s price target to $102 from the previous $103 on its shares, while maintaining a Neutral rating on the stock. The firm&#8217;s analysis highlighted several factors that could potentially shift its stance to a more bullish view on Starbucks shares.<\/p>\n<p>The firm outlined a series of conditions that could lead to a more optimistic assessment of Starbucks&#8217; stock, including a clear strategy for increasing U.S. same-store sales (SSS), particularly through transaction growth, which would alleviate concerns about earnings before interest and taxes (EBIT) growth and could lead to an expansion of the stock&#8217;s multiple. <\/p>\n<p>Additionally, a distinctive plan for the Chinese market, where low-cost competitors have recently proliferated, could represent a positive development for the premium brand. Other factors include identifying growth opportunities beyond China, demonstrating how cost reductions could mitigate revenue weaknesses, and strategies for engaging with shareholders to provide a deeper understanding of decision-makers across business units.<\/p>\n<p>The firm also provided insights into the primary debates among investors regarding Starbucks. These debates focus on the U.S. labor situation, store-level initiatives to increase capacity, the price-value proposition for consumers, the brand&#8217;s capacity to navigate a slowdown in U.S. consumer demand, whether cost savings can preserve near-term earnings per share (EPS) outlooks, the impact of competition in China on growth opportunities, and the current valuation of Starbucks shares.<\/p>\n<p>In terms of financial estimates, Citi revised its fiscal year 2024 and 2025 EPS projections for Starbucks to $4.02 and $4.64, down from the previous forecasts of $4.09 and $4.72, respectively. The new price target of $102 is based on a 13.5 times multiple of the firm&#8217;s next twelve months (NTM) EBITDA estimate, 12 months from now, and is approximately 0.9 times the relative multiple, aligning with previous valuations.<\/p>\n<p><em>This article was generated with the support of AI and reviewed by an editor. For more information see our T&#038;C.<\/em><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>\u00a9 Reuters. On Wednesday, Citi adjusted its outlook for Starbucks Corporation (NASDAQ:), reducing the coffee giant&#8217;s price target to $102 from the previous $103 on its shares, while maintaining a Neutral rating on the stock. The firm&#8217;s analysis highlighted several factors that could potentially shift its stance to a more bullish view on Starbucks shares. The firm outlined a series of conditions that could lead to a more optimistic assessment of Starbucks&#8217; stock, including a clear strategy for increasing U.S. same-store sales (SSS), particularly through transaction growth, which would alleviate concerns about earnings before interest and taxes (EBIT) growth and [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":77812,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[48,49,50,3],"tags":[],"_links":{"self":[{"href":"https:\/\/equitynewsreport.com\/h\/wp-json\/wp\/v2\/posts\/77811"}],"collection":[{"href":"https:\/\/equitynewsreport.com\/h\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/equitynewsreport.com\/h\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/equitynewsreport.com\/h\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/equitynewsreport.com\/h\/wp-json\/wp\/v2\/comments?post=77811"}],"version-history":[{"count":0,"href":"https:\/\/equitynewsreport.com\/h\/wp-json\/wp\/v2\/posts\/77811\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/equitynewsreport.com\/h\/wp-json\/wp\/v2\/media\/77812"}],"wp:attachment":[{"href":"https:\/\/equitynewsreport.com\/h\/wp-json\/wp\/v2\/media?parent=77811"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/equitynewsreport.com\/h\/wp-json\/wp\/v2\/categories?post=77811"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/equitynewsreport.com\/h\/wp-json\/wp\/v2\/tags?post=77811"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}