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Starbucks sized up ahead of earnings

Published 01/18/2018, 11:04 AM
© Reuters.  Starbucks sized up ahead of earnings
CSGN
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SBUX
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  • Credit Suisse (SIX:CSGN) sizes up the impact of tax reform on Starbucks (SBUX +0.6%).
  • The firm estimates Starbucks will pay a global tax rate of about 24% to 25% vs. ~33% prior to drive about $425M in tax savings.
  • Starbucks is expected to reinvest about $125M in the tax savings in areas such as staffing and technology.
  • CS boosts its 2018 EPS estimate to $2.45 from $2.28 and 2019 EPS estimate to $2.88 from $2.64.
  • Despite the higher profit expectations on Starbucks, analyst Jason West and team keep a Neutral rating in place due to concerns over comparable sales headwinds.
  • Starbucks is due to report earnings on January 25.
  • Now read: Starbucks' Potential In India Is Overrated


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