Starbucks Downgraded to “Neutral” at Goldman Sachs; Valuation Call (SBUX)

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Coffee retailer Starbucks Corporation ( SBUX ) on Thursday caught a downgrade from analysts at Goldman Sachs on a valuation call.

The firm said it cut its rating on SBUX from "Conviction Buy" to "Neutral," but maintained its $44 price target. That target suggests a nearly 9% upside to the stock's Wednesday closing price of $40.42.

Goldman noted it remains positive on the stock, but no longer sees meaningful EPS upside, given it's almost reached its $44 target. The analyst also cut its earnings estimates to reflect lower same-store sales.

Starbucks shares fell 37 cents, or -0.9%, in premarket trading Thursday.

The Bottom Line
Shares of Starbucks ( SBUX ) have a 1.29% dividend yield, based on last night's closing stock price of $40.42. The stock has technical support in the $36-$38 price area. The shares are trading at all-time highs.

Starbucks Corporation ( SBUX ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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