Consumer
Starbucks Cut to Sell as Redburn Warns of Bumpy Path to Recovery
- Costs to turn coffee chain around not reflected in consensus
- CEO Brian Niccol inherits company that has struggled to grow
A Starbucks store in New York.
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
Wall Street applauded when Starbucks Corp. named Brian Niccol to head a rebound effort. Three months later, the cheers are fading as Redburn Atlantic tells investors to dump the coffee chain’s shares.
Analysts led by Edward Lewis downgraded their rating on Starbucks to sell from neutral and cut their price target to $77 from $133, implying a 22% drop over the next 12 months from Tuesday’s close.