Starbucks shares fall the most in two months on Wednesday, Piper Jaffray downgrades the stock to “Neutral”, slashes price target

Piper Jaffray reportedly cut its rating on Starbucks Corporation (SBUX) to “Neutral” from “Overweight” previously, citing continued pressure with the coffee chains comparable store sales in the United States. The firm also revised down its price target on the stock to $53 from $60 previously.

Starbucks shares closed lower for the first time in the past eight trading sessions on NASDAQ on Wednesday. It has also been the steepest daily loss since June 28th. The stock went down 2.19% ($1.18) to $52.82, after touching an intraday low at $52.66, or a price level not seen since August 15th ($52.30).

Shares of Starbucks Corporation have retreated 8.03% so far in 2018 compared with a 7.04% gain for the underlying index, S&P 500 (SPX).

In 2017, Starbucks Corp’s stock rose 3.44%, thus, it again underperformed the S&P 500, which registered a 19.42% return.

According to Seeking Alpha, Piper Jaffrays checks for the fourth fiscal quarter indicate a 2% growth in Starbucks Corps same-store sales, which compares with a consensus estimate of a 2.8% growth.

In a research note, Piper Jaffray analyst Nicole Miller Regan highlighted several aspects that might cause concerns – namely, “inconsistent results, credibility of guidance, and management transitions”.

Miller Regan also noted that the shares of the coffee giant could remain “range bound at best” until same-store sales trends in the US improve.

According to CNN Money, the 24 analysts, offering 12-month forecasts regarding Starbucks Corporation’s stock price, have a median target of $58.00, with a high estimate of $69.00 and a low estimate of $51.00. The median estimate represents a 9.81% upside compared to the closing price of $52.82 on August 22nd.

The same media also reported that 15 out of 30 surveyed investment analysts had rated Starbucks Corporation’s stock as “Hold”, while 14 – as “Buy”.

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 – $52.91
R2 – $52.99
R3 (Range Resistance – Sell) – $53.08
R4 (Long Breakout) – $53.33
R5 (Breakout Target 1) – $53.63
R6 (Breakout Target 2) – $53.75

S1 – $52.73
S2 – $52.65
S3 (Range Support – Buy) – $52.56
S4 (Short Breakout) – $52.31
S5 (Breakout Target 1) – $52.01
S6 (Breakout Target 2) – $51.89

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

Central Pivot Point – $52.88
R1 – $54.29
R2 – $55.02
R3 – $56.43
R4 – $57.84

S1 – $52.15
S2 – $50.74
S3 – $50.01
S4 – $49.28