Current trend

Shares of coffee retailer Starbucks Corp. trading in a corrective trend around 74.00.

Analysts at Morgan Stanley holding company lowered the target price for the issuer's shares to 98.0 dollars from 104.0 dollars previously, while maintaining the rating at the level of Overweight, citing the fact that the forecast for earnings per share in the second quarter is 0.91 dollars, missing the Wall Street consensus estimate of 0.94 dollars and operating margin expectations of 16.3%, which in turn is below the preliminary 16.6%. Its fiscal 2025 earnings forecast dropped to 3.98 dollars from 4.14 dollars previously.

Estimates for the company's third-quarter financial report call for revenue of 9.27 billion dollars, up slightly from 9.20 billion dollars in the same period a year earlier, and earnings per share are projected at 0.9407 dollars, down from 1.0000 dollars in the previous period.

The company's board of directors approved the payment of quarterly dividends, which will amount to 0.57 dollars per share, which corresponds to a yield of 3.05%.

Support and resistance

On the daily chart, stock quotes are trading in a corrective downward trend, being in a channel with dynamic boundaries of 76.50–64.00.

Technical indicators strengthen the sell signal: the range of EMA fluctuations on the Alligator indicator is expanding and the AO histogram is forming new descending bars, being in the sales area.

Support levels: 72.00, 65.10.

Resistance levels: 76.40, 82.70.

Trading tips

If the decline continues, and the price consolidates below the local low at 72.00, short positions can be opened with the target at 65.10. Stop-loss — 74.00. Implementation time: 7 days and more.

If the asset reverses and the price consolidates above the resistance level at 76.40, long positions will be relevant with target at 82.70. Stop-loss — 74.00.