Analyst Downgrades Starbucks Stock on China Challenges

The security is underperforming so far this year

Digital Content Manager
Sep 19, 2023 at 10:30 AM
facebook X logo linkedin


TD Cowen downgraded Starbucks Corp (NASDAQ:SBUX) to "market perform" from "outperform," and slashed its price target to $107 from $117. The brokerage firm noted macro challenges for same-store sales in China, as well as low-priced competition that could persist for the next couple of years. At last check, SBUX is down 2% at $94.84.
 

Overhead pressure from its 50-day moving average has kept the equity in check since mid-August, while the $100 region rejected a rally later that month. SBUX currently sports a 4.1% year-to-date deficit, and could soon retest support at the $94 level.

Short-term options traders are extremely bearish, per the security's Schaeffer's put/call open interest ratio (SOIR) of 1.11 that sits in the top percentile of annual readings. Echoing this, Starbucks stock's 10-day put/call volume ratio of 1.90 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits in the 97th percentile of its annual range.

The equity boasts affordably priced premiums, too, per its Schaeffer's Volatility Index (SVI) of 18% that ranks higher than only 6% of annual readings. In other words, the options pits are pricing in low volatility expectations right now.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI