Starbucks’ Recent Rally Looks Unsustainable

摘要

BMI View: Weakening growth fundamentals for US coffee chainnStarbucks suggest that its recent impressive rally is unlikely to bensustainable beyond the near future. We are particularly concernednabout the impact of growing demand headwinds in the US and Chinanon Starbucks’ headline growth. Combining our cautious fundamentalnoutlook and bearish-looking technicals, we believe a sizeable neartermnretracement in Starbucks’ share price is on the cards.