Starbucks shares close lower on Tuesday, retailer inks licensing agreement with Brazil’s SouthRock Capital

According to a report by Reuters on Tuesday, a deal has been inked between Starbucks Corp and private equity firm SouthRock Capital of Brazil, under which the latter will be able to develop and operate branches of the US coffee chain across the South American country. The value of the agreement, however, remained undisclosed.

Starbucks shares closed lower for the first time in the past eight trading sessions on Tuesday. The stock went down 0.59% ($0.35) to $59.05, after touching an intraday high at $60.69, or a price level not seen since January 25th ($61.20).

In the week ended on March 11th the shares of the coffee chain added 2.69% to their market value compared to a week ago, which marked a second consecutive period of gains.

The stock has pared its advance to 3.42% so far during the current month, following a 0.51% increase in February. The latter has been the first gain out of three months.

For the entire past year, the shares of the NASDAQ-listed retailer rose 3.44% following a 7.51% drop in 2016.

According to the two companies, with the current deal, all retail operations by Starbucks Corp in Latin America are now entirely licensed rather than directly managed. The coffee chain already operates 113 stores at locations such as Rio de Janeiro and Sao Paulo.

Ken Pope, the founder of SouthRock Capital, explained in a statement earlier this week that the private equity company would seek opportunities to expand in both new and existing markets.

According to CNN Money, the 29 analysts, offering 12-month forecasts regarding Starbucks Corporation’s stock price, have a median target of $65.00, with a high estimate of $72.00 and a low estimate of $57.00. The median estimate is a 10.08% surge compared to the closing price of $59.05 on March 13th.

The same media also reported that 22 out of 34 surveyed investment analysts had rated Starbucks Corporation’s stock as “Buy”, while 11 – as “Hold”.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, todays levels of importance for the Starbucks stock are presented as follows:

R1 – $59.21
R2 – $59.38
R3 (Range Resistance – Sell) – $59.54
R4 (Long Breakout) – $60.03
R5 (Breakout Target 1) – $60.60
R6 (Breakout Target 2) – $60.83

S1 – $58.89
S2 – $58.72
S3 (Range Support – Buy) – $58.56
S4 (Short Breakout) – $58.07
S5 (Breakout Target 1) – $57.50
S6 (Breakout Target 2) – $57.27

By using the traditional method of calculation, the weekly levels of importance for Starbucks Corporation (SBUX) are presented as follows:

Central Pivot Point – $57.88
R1 – $59.21
R2 – $59.97
R3 – $61.30
R4 – $62.64

S1 – $57.12
S2 – $55.79
S3 – $55.03
S4 – $54.28