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...That's where Caffe-Amante comes in!
There was a time when getting a coffee at Starbucks Corp. – whether it’s a basic “tall bold” or a souped-up venti concoction – was considered a relatively cheap treat, though those of us with a daily Starbucks habit might think otherwise.
However, a report from RBC Capital Markets analyst Larry Miller indicates that even that daily cup of store-bought java is one of the victims of the credit crunch. Mr. Miller lowered his 2009 earnings estimates – to US90¢ from US95¢, saying the move “reflects our proprietary survey work, which suggests Starbucks sales continue to weaken as consumers are changing their habits and brewing more coffee at home.” He also lowered his target price on the stock - to US$14 from US$17 - based on a multiple of 15 times his 2009 estimates. Starbucks shares trade at about US$11.
It is Mr. Miller’s view that Starbucks will be "a mid-to-high-teen earnings grower long term, but with near term challenges.” He added there are other factors that may impede the company meeting his target price or earnings estimates – primarily rising green coffee and the difficulty in obtaining suitable sites to meet its aggressive growth targets.
There was a time when getting a coffee at Starbucks Corp. – whether it’s a basic “tall bold” or a souped-up venti concoction – was considered a relatively cheap treat, though those of us with a daily Starbucks habit might think otherwise.
However, a report from RBC Capital Markets analyst Larry Miller indicates that even that daily cup of store-bought java is one of the victims of the credit crunch. Mr. Miller lowered his 2009 earnings estimates – to US90¢ from US95¢, saying the move “reflects our proprietary survey work, which suggests Starbucks sales continue to weaken as consumers are changing their habits and brewing more coffee at home.” He also lowered his target price on the stock - to US$14 from US$17 - based on a multiple of 15 times his 2009 estimates. Starbucks shares trade at about US$11.
It is Mr. Miller’s view that Starbucks will be "a mid-to-high-teen earnings grower long term, but with near term challenges.” He added there are other factors that may impede the company meeting his target price or earnings estimates – primarily rising green coffee and the difficulty in obtaining suitable sites to meet its aggressive growth targets.
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