TD Cowen downgraded Starbucks (SBUX) to Hold from Buy with an unchanged price target of $90. The firm believes Starbucks is settling into a new 2026 through 2028 earnings base versus consensus that does not appear to be considering labor investments that are central to the company’s turnaround. TD also sees risk that a return to normalized same-store-sales is delayed by deteriorating value perceptions, historical underperformance in recessions, and increased competition. In addition, Starbucks shares are trading above historical multiples, contends the firm. It models Starbucks’ 2026-2028 earnings below consensus as the company investors in a turnaround.
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