Star­bucks will be the next U.S. brand to warn of China trou­ble af­ter Ap­ple

Tehran Times - - ECONOMY -

Ap­ple shares col­lapsed ear­lier this month af­ter warn­ing that iPhone sales would fall short be­cause of weak­ness in the China econ­omy.

Star­bucks will be next, ac­cord­ing to Gold­man Sachs.

The firm down­graded the world’s largest cof­fee seller to neu­tral from buy on Fri­day, cit­ing “a num­ber of points of cau­tion on China.”

“The re­cent AAPL [Ap­ple] an­nounce­ment (while po­ten­tially also prod­uct-driven) cited trade con­cerns/macro, and MCD [McDonald’s] ac­knowl­edged softer trends in the re­gion at a late Novem­ber event,” an­a­lyst Karen Holt­house wrote in a note to clients. “The GS macro team also ex­pects a con­tin­ued slow down in GDP, at least par­tially driven by con­sump­tion.”

Gold­man also low­ered its price tar­get on Star­bucks to $68 from $75. The shares fell 0.8 per­cent in trad­ing Fri­day to $63.73 fol­low­ing the Gold­man call.

Star­bucks has 3,600 stores in China and wants to dou­ble that num­ber in the next four years.

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