Starbucks' impact on Tata Global overstated: MStanley

Mon Nov 19, 2012 11:11am IST

A pedestrian walks past the new Starbucks logo on a store in Times Square in New York March 8, 2011. REUTERS/Lucas Jackson/Files

A pedestrian walks past the new Starbucks logo on a store in Times Square in New York March 8, 2011.

Credit: Reuters/Lucas Jackson/Files

Related Topics

Stocks

   
Priyanka Gandhi Vadra, daughter of Congress party chief Sonia Gandhi, adjusts her flower garlands as she campaigns for her mother during an election meeting at Rae Bareli in Uttar Pradesh April 22, 2014. REUTERS/Pawan Kumar

Election 2014

More than 814 million people — a number larger than the population of Europe — are eligible to vote in the world’s biggest democratic exercise.  Full Coverage 

Reuters Market Eye - Shares in Tata Global Beverages (TAGL.NS) fall 2.9 percent 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 partner of Starbucks(SBUX.O), 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."

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Monsoon Forecast

Monsoon Forecast

South Asia monsoon seen below-average to average in 2014 - WMO.  Full Article 

Solar Dispute

Solar Dispute

Green groups urge U.S. to drop solar trade case against India.  Full Article 

Oil Imports

Oil Imports

India to make May-July oil payments to Iran - sources.  Full Article 

Facebook Earnings

Facebook Earnings

Facebook Q1 revenue grows 72 percent on rising mobile ads.  Full Article 

DLF Shares

DLF Shares

DLF slides 3 percent, underperforms rivals.  Full Article 

Rice Exports

Rice Exports

India may cede top rice exporter spot under Southeast Asian price onslaught.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage