Starbucks may remain range-bound near-term, says Oppenheimer Oppenheimer believes that the recent increases in coffee prices are "manageable" for Starbucks (SBUX), but have "put a major strain" on its ability to outperform 2015 expectations. The firm thinks the stock could remain range-bound in the near-term, and prefers Yum! Brands, (YUM) which the firm thinks can beat EPS estimates and has multiple expansion drivers. But the firm still believes that Starbucks has multiple positive comps catalysts, and it keeps an Outperform rating on the stock.
Yum! Brands upgraded to Outperform from Neutral at RW Baird RW Baird upgraded Yum! Brands citing an attractive risk/reward following the recent underperformance of shares. Baird expects Yum! to report positive quarterly numbers in 2014 as the China business recovers and raised its price target for shares to $87 from $79.