For Starbucks, China headwinds 'likely to get stronger': 5 big analyst cuts
Investing.com — Here is your Pro Recap of the biggest analyst cuts you may have missed since Monday: initiation at Underperform at Arm Holdings, and downgrades for Starbucks, Lazard, PayPal, Dropbox, and Arm Holdings.
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TD Cowen downgraded Starbucks (NASDAQ:SBUX) to Market Perform from Outperform and cut its price target to $107.00 from $117.00.
The analysts highlighted concerns about macro and competitive pressures in China, which they expect will pose challenges to Starbucks' same-store sales in the country.
We note an increasing investor narrative on China (~16% of 2025E EBIT) that we worry is poised to persist given parallels to Yum circa 2005, when China began a decade of dominating the investor focus. While we were pleased with Starbucks China's 3Q (June) performance, we see risk that China headwinds are likely to get stronger rather than weaker.
Shares closed down 1.5% to $95.29.
Financial advisory Lazard (NYSE:LAZ) was slashed to Sell at Goldman Sachs, with the price target lowered by $5 to $32, as reported in real time on InvestingPro.
The downgrade came on what the analysts feel is an expensive valuation:
«In our view, LAZ’s valuation appears slightly elevated, given it trades largely in line with its historical average (like peers), juxtaposed with a more challenging growth trajectory, especially in the near term.»
Shares lost 1.3% for the session to $32.96.
PayPal slides on downgrade
PayPal (NASDAQ:PYPL) shares lost ground after MoffettNathanson's Monday downgrade of the stock to Market Perform from Outperform, with the online payment company's price target cut to $75.00 from $115.00.
The move came ahead of the arrival
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