4985

Starbucks’ impact on Tata Global overstated-Morgan Stanley

The firm downgrades the stock to ‘underweight’ from ‘equal weight’
Comment E-mail Print Share
First Published: Mon, Nov 19 2012. 01 16 PM IST
Starbucks founder and chief executive Howard Schultz at the opening of India’s first Starbucks store at in south Mumbai on 19 October. Photo: Abhijit Bhatlekar/Mint
Starbucks founder and chief executive Howard Schultz at the opening of India’s first Starbucks store at in south Mumbai on 19 October. Photo: Abhijit Bhatlekar/Mint
Shares in Tata Global Beverages Ltd fall 4.12% after Morgan Stanley downgrades the stock to “underweight” from “equal weight”. Tata Global shares have nearly doubled this year, partly on hopes about its outlook as the joint venture (JV) partner of Starbucks, which has opened three coffee shops in India this year.
However, Morgan Stanley says the contribution from the Starbucks JV will be limited and recommends booking profits on Tata Global.
“The business suffers from poor earnings visibility, weak brand/market positioning, a lack of pricing power, sluggish revenue growth and mediocre return ratios,” Morgan Stanley says about Tata Global in a note dated on Monday.
Morgan Stanley also adds: “Structurally this is one of the weakest businesses in our coverage universe.”
Comment E-mail Print Share
First Published: Mon, Nov 19 2012. 01 16 PM IST
blog comments powered by Disqus
  • Wed, Apr 16 2014. 06 11 PM
  • Wed, Apr 09 2014. 05 19 PM
ALSO READ close

Starbucks says India operations fastest growing in its history

Subscribe |  Contact Us  |  mint Code  |  Privacy policy  |  Terms of Use  |  Advertising  |  Mint Apps  |  About HT Media  |  Jobs
Contact Us
Copyright © 2014 HT Media All Rights Reserved