(MENAFN- AsiaNet News) <p>TD Cowen on Thursday lowered its rating on Starbucks (SBUX) due to what the analyst sees as weak projections for the coffee chain's business.</p> <p>According to The Fly, the firm lowered its rating to 'Hold' from 'Buy' but kept the price target unchanged at $90.</p> <p>TD Cowen said that its model now predicts Starbucks' earnings for 2026 to 2028 will be below consensus estimates as the company invests behind its turnaround efforts.</p> <p>Major analysts are not considering the labor investment Starbucks would likely have to make in their models, TD Cowen said.</p> <p>It noted additional risks, including weak sales growth resulting from deteriorating value perceptions, historical underperformance during recessions, and increased competition.</p> <p>Earlier this month, Goldman Sachs cut its rating on the company to 'Neutral' from 'Buy.'</p> <p>On Stocktwits, the retail sentiment for Starbucks was 'bearish,' unchanged over the last month.</p> <img> SBUX sentiment and message volume as of May 29 | Source: Stocktwits <p>Last month, Starbucks Corp reported second-quarter results that missed Wall Street expectations, fueling doubts about how soon its new turnaround strategy will deliver results.</p> <p>Last October, the coffee chain appointed Brian Niccol from Chipotle as its CEO. Since then, Niccol has listed several strategies to boost customer experience and sales.</p> <p>The company also faces a strike from its baristas in the U.S., and is reportedly exploring options for its China business.</p> <p>Starbucks shares are down 7.9% this year.</p> <p>For updates and corrections, email newsroom[at]stocktwits[dot]com.<</p>

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