Starbucks guidance ‘should provide some relief,’ says Morgan Stanley

Morgan Stanley analyst Brian Harbour contends that given tough sentiment heading into the report, Starbucks’ mostly in-line Q3 results and sticking to annual guidance “should provide some relief for the stock.” However, U.S. sales improvement, which the firm views as “still the key driver,” is not visible yet despite “some metrics moving in the right direction,” adds the analyst, who maintains an Overweight rating and $98 price target on the shares given the view that there “remains plenty of opportunity if things start to go the right direction.”