Starbucks price target lowered to $95 from $100 at RBC Capital

RBC Capital analyst Logan Reich lowered the firm’s price target on Starbucks (SBUX) to $95 from $100 and keeps an Outperform rating on the shares. The company’s Q2 print was challenging, with EBIT margins having missed by 121 bps and the company unexpectedly announcing incremental investments in labor hours to drive transaction growth vs. new store equipment, impacting operating margins, the analyst tells investors in a research note. Elevated coffee prices and potential tariffs could be material headwinds to margins at some point over the next few quarters, RBC added.