Starbucks price target lowered to $100 from $120 at BMO Capital

BMO Capital lowered the firm’s price target on Starbucks to $100 from $120 but keeps an Outperform rating on the shares ahead of its results. The company’s U.S. comp trends remained pressured in Q3 as recent platform launches had minimal impact, and continued patience is likely required before Starbucks begins seeing improving momentum, in particular as cyclical headwinds in U.S./China persist, the analyst tells investors in a research note. BMO adds however that the company’s challenges are likely “cyclical rather than structural” and already reflected in shares, with compressed multiple creating an “asymmetric risk/reward”.