Starbucks Gets Unwanted Sell Rating (SBUX, MCD)
Starbucks Corp. (NASDAQ: SBUX) has performed rather well in the most recent 5-week stock market rally. After all, shares hit a low of $7.06 last November and challenged the $8.00 mark just last month. By the end of March we…
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Deutsche Bank had an already-cautious HOLD rating on Starbucks before this, so this may be adding insult to injury. It now has a $7.00 price target. One of the notions for the downgrade is coming from a nationwide launch of McCafe from McDonald’s, and this leads Deutsche Bank to believe that sales at Starbucks’ stores are not likely to improve.
McDonald’s stock is down 2% at $53.60 pre-market, but Starbucks is taking it on the chin here. Its shares are down almost 6% at $11.20 and its 52-week range is $7.08 to $18.56.
Oddly enough, if you go into a Starbucks that drop off that had been seen before seems to have leveled off. Of course, that doesn’t mean that everyone is still paying through the nose for frappuccino and mocha latte.
JON C. OGG
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