TD Cowen analysts downgraded Starbucks (NYSE:SBUX) from Outperform to Market Perform, with a reduced price target of $107 per share. This move resulted in more than a 1% decline in Starbucks' stock price pre-market today.

The downgrade is primarily driven by concerns about economic and competitive pressures in China affecting the company's same-store sales. The analysts believe that while consensus earnings estimates for 2023-2025 remain attainable, Starbucks' current valuation doesn't adequately account for these challenges, and they anticipate the stock will experience limited growth in the near term.