SBUX (Market Perform) - Raising PT to $61 from $54. We are pleased with 4Q s Americas comp beat the first time since 1Q16 which was most tangibly driven by an improvement in the afternoon daypart particularly with less headwind in Frappuccino sales. We are not inclined to chase shares spike as we do not view continued sales beats as durable. SBUX continues to face challenges from competition that we expect will be a long fix.
Cowen_SBUX.pdfAIRG (Outperform) - Raising PT to $16 from $12. AIRG is starting to deliver strong results - driven by revenue contributions from the DOCSIS 3.1/802.11AC gateway/router upgrade cycle IoT and automotive that are all just starting to hit the P&L. We see a solid path to 20% EPS CAGR over the next few years and valuation remains compelling w/ 3/sh net cash for tuck-ins or cap return. Target to 16 on peer multiple.