RBC Capital Reiterates Outperform on Starbucks Coffee (SBUX) After Trimming Estimates

RBC Capital reiterated an Outperform rating and $68.00 price target on Starbucks Coffee (NASDAQ: SBUX) following the company's 3Q. Estimates were cut to account for labor investments and a slowing tailwind from input costs.

Analyst David Palmer commented, "We are maintaining our FY16 EPS but trimming our FY17 EPS estimate to account for labor investments and a diminishing tailwind from input costs. We remain confident Americas SSS growth will return to 5% in F4Q, but difficult comparisons could mean a chance of another sub-5% comp as early as the December quarter."

For an analyst ratings summary and ratings history on Starbucks click here. For more ratings news on Starbucks click here.

Shares of Starbucks closed at $57.60 yesterday.

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