.September 24, 2024 at 2:13 PM

Jefferies analysts downgraded Starbucks (NASDAQ:SBUX) to Underperform from Hold, with a lowered price target of $76 from $80. Concerns were raised regarding potential strategic changes under the new CEO, citing challenges in execution related to operations, company culture, value perception, and technology improvements. Anticipated reset in fiscal 2025 guidance to reflect lower single-digit EPS growth, well below consensus of 11-12%. Ongoing pressure from negative same-store sales in U.S. and international markets could impact stock, with current PE ratio of 25x expected to align with peers at 23x and below implied 21x two-year forward PE. New price target suggests 20% potential downside based on 19x fiscal 2026 PE.