Starbucks slips after Oppenheimer, RBC rate as near-term neutral
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Starbucks (NASDAQ:SBUX)
-2.2% pre-market after getting slapped with two downgrades, one from Oppenheimer and the other from RBC Capital that expect the stock to remain stuck in neutral for the near term.
Oppenheimer's Brian Bittner remains upbeat toward Starbucks' unit growth and same-store sales trends, but his latest analysis suggests earnings forecasts in 2022 and 2023 "lack upside levers needed to drive outperformance."

"While 2022 is a well-telegraphed 'investment year,' the Street already underwrites outsized margin and EPS growth in '23," which Bittner believes "elevates degree of difficulty" through 2023.
RBC analyst Christopher Carril still views Starbucks as a compelling long-term growth opportunity, but cites current valuation and the FY 2022 margin outlook in foreseeing less upside for the stock in the near term.
Analysts at Baird recently cited an increasingly uncertain backdrop for the China business in their recent Starbucks downgrade.