UPDATE: Williams Capital Group Downgrades Starbucks to Hold on Near-Term Challenges

Williams Capital Group lowered its rating on Starbucks

from Buy to Hold and reduced its price target from $70 to $49. Williams Capital Group commented, "Our downgrade reflects the near-term challenges to our long-term investment thesis for the company. We no longer expect to see improving same-store-sales or margin expansion in the near-term and we now expect the benefits of lower coffee costs will likely be offset by increases in investment spending. We believe that Starbucks continues to have attractive growth drivers, but no one is immune to overall spending reductions." Starbucks closed at $45.90 on Wednesday.