Shares of Starbucks Corp. dropped 0.7% in premarket trade Wednesday, putting them in danger of a eighth-straight loss, after the coffee seller was downgraded at Wedbush Securities, which cited concerns over valuation. Analyst Nick Seytan cut his rating to neutral after being at outperform since he started coverage in January 2015. He kept his stock price target at $65, which is 6.7% above Tuesday's closing price of $60.92. Prior to the start of the stock's losing streak, which has shaved 5.6% off the price, the stock had run up 13% in three months to a record close of $64.57 on June 2, amid expectations of a ramp up in comparable-store sales. Seytan said the sales outlook follows signs of improving trends in March and April, but suggests that may be a bit optimistic. At current share prices, "we now view current 2017 and 2018 expectations as realistic and valuation as fair," Seytan wrote in a note to clients. "Checks indicate U.S. comp acceleration, but acceleration is in line to slightly below expectations." Starbucks's stock has climbed 9.7% year to date through Tuesday, while the S&P 500 has gained 9.0%.
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