Starbucks upgraded to Overweight from Equal Weight at Morgan Stanley

Morgan Stanley upgraded Starbucks to Overweight from Equal Weight with a price target of $120, up from $112. After recent weakness driven by real headwinds across Starbucks’ global business, the firm sees an “interesting risk-reward skew,” the analyst tells investors in a research note. While the company’s U.S. sales slowing is a legitimate concern, available product, technology, and store levers “remain interesting, and discounted somewhat by the market,” says the firm. It believes China concerns are now fully priced into the shares.