NEW YORK (TheStreet) -- Starbucks
(SBUX) had its price target reduced to $84 from $88, Deutsche Bank said Friday. The firm said though the company's second-quarter results were "surprisingly good," analysts were modestly lowering its targets due to risks including "mis-execution on key growth initiatives, slowing consuming spending" and rising commodity prices.
The firm reiterated a "buy" rating on the stock, noting shares deserve to trade at a premium due to a "wide array of sales drivers and healthy cash generation."
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Separately, TheStreet Ratings team rates STARBUCKS CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate STARBUCKS CORP (SBUX) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
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