5 Stocks At Risk From Slowing Chinese Economy

In this article, we discuss 5 stocks at risk from the slowing Chinese economy. If you want to read about some more stocks at risk from the slowing Chinese economy, go directly to 10 Stocks At Risk From Slowing Chinese Economy.

5. Starbucks Corporation (NASDAQ:SBUX)

Number of Hedge Fund Holders: 55  

Starbucks Corporation (NASDAQ:SBUX) is a specialty coffee firm. Inflation and other macro pressures are already weighing on the stock and reports of a sharp slowdown in the Chinese economy are likely to result in a further slide in the share price. The company controls over 35% of the coffee market in China with thousands of stores across the country. On August 18, Cowen analyst Andrew Charles maintained an Outperform rating on Starbucks Corporation (NASDAQ:SBUX) stock and raised the price target to $104 from $94, noting that a new investor meeting would be a catalyst for the stock in the near-term. 

Among the hedge funds being tracked by Insider Monkey, Connecticut-based investment firm Bridgewater Associates is a leading shareholder in Starbucks Corporation (NASDAQ:SBUX), with 3.2 million shares worth more than $247 million. 

In its Q1 2022 investor letter, Polen Capital, an asset management firm, highlighted a few stocks and Starbucks Corporation (NASDAQ:SBUX) was one of them. Here is what the fund said:

“We trimmed our positions in most of these companies in 1Q 2022 and sold our stake in Starbucks after a 12+ year holding period. In our view, Starbucks Corporation (NASDAQ:SBUX) continues to be in a unique position to serve its customers who value the quality of its products and the convenient way they can be purchased. At the same time, Starbucks’ business is maturing in western markets, and its employee and store-related costs are growing, which should lead to slower earnings growth than we would prefer and further P/E multiple compression. We believe we have better opportunities as we continue to assess the impact of these issues for Starbucks Corporation (NASDAQ:SBUX).”