Assume you are an analyst in a buyside organization. Your PM portfolio manager asks you to review Starbucks and Nike and make a recommendationeither buy or sell (short) the equity.

There is no right or wrong answer. Your ability to construct a logical argument supporting your stance is what your grade is based on.

In 500 words pull together an opinion based on: Prevailing consensus opinions on the stock (Buy/Sell/Hold); target price and earnings estimates (this year and a longer term outlook via 3-5Y CAGR Current industry trends and dynamics. Stock market performance and sentiment are valid considerations Recent corporate announcements and management changes if any within organization The competitive picture and how it is changing

Include a brief description of the company

Your conclusion of buy or sell can be positioned relative to prevailing market consensus.

You agree with consensus, WHY?

You disagree, and WHY

Support your thesis with a

• DCF valuation and/or relative valuation,
• industry trends,
• management,
• and/or growth opportunities.