Starbucks shares dip as RBC downgrades to 'sector perform'

Shares of coffee giant Starbucks RIC fall ~1% to $96.62 premarket

RBC Capital Markets downgrades to "sector perform" from "outperform"

Brokerage says ongoing labor costs and future investment needs make it harder to support an outperform rating

It sees room for North America top-line gains and views FY28 same-store sales targets as achievable, but required investments look larger and more permanent and the margin path remains unclear

41 analysts rate the stock "hold" on average; median PT is $100 - data compiled by LSEG

As of last close, stock up about 16% YTD