Wednesday, January 12, 2011

Uncertainty Surrounds Starbucks (NASDAQ:SBUX) for 2011 Says UBS

UBS (NYSE:UBS) sees the Starbucks (NASDAQ:SBUX) shrouded more in shadow for 2011, as there is a lack of clarity at this time as to how the company will perform, after a solid year.

UBS says, "We believe that 2011 for Starbucks will be more of a mixed bag than 2010 - with slowing 1-year sales trends and rising commodity costs - but could also be a year that ultimately resolves several unknowns for investors. Unlike 2010, when accelerating sales drove stock momentum, near-term upside is now less clear to us. However, we believe the stock can work as investors gain clarity on Starbucks numerous growth initiatives and top-line growth accelerates."

UBS maintains a "Buy" rating on Starbucks, which was trading at 32.34, up $0.08, or 0.25 percent, as of 1:40 PM EST. UBS raised their price target on Starbucks from $33 to $37.

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