Investing.com - Starbucks (NASDAQ:SBUX) management is a bit too optimistic about its China business.
That's the view of Wedbush Securities.
The Wall Street firm has downgraded the coffee chain and reduced its 12-month stock price target.
Wedbush lowered its rating from outperform to neutral and price target from $70 to $56 a share.
The firm sees Starbucks' China sales growth coming in lower than the company recently projected.
That's important because Starbucks' strong growth in China has offset its slowing U.S. business.
Wedbush joins Mizuho and Bernstein in lowering its rating and stock price target.
Starbuck shares are down about 2% over the past 12 months.