Starbucks (SBUX) is expected to see slowing US momentum and “pressured” China sales trends in fiscal Q1, along with potential updates to fiscal year 2024 guidance, UBS said in a note.
The coffeehouse chain will report its earnings results on Tuesday.
“Concerns about slowing US trends to exit the quarter and more difficult F2Q comparisons have investors mixed on whether FY24 guidance for comps of 5% to 7% and adjusted EPS of 15% to 20% will be reduced or reiterated,” UBS analysts said.
They said valuation of the stock is undemanding, and the company remains well positioned long term with an attractive growth profile, but they kept their neutral rating for now, pointing to uncertainty around expected US and China sales pressures.
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