Analyst Jon Tower from Citi maintained a Hold rating on Starbucks and keeping the price target at $95.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Jon Tower has given his Hold rating due to a combination of factors surrounding Starbucks’ current market position and future prospects. One of the primary considerations is the uncertainty regarding Starbucks’ business in China. Although there are reports of potential offers for its China operations, the lack of specific disclosures and clarity about the company’s ongoing economic interests in the region makes it challenging to assess the full impact on Starbucks’ valuation.
Additionally, while there is potential for a significant financial boost if Starbucks uses proceeds from a possible China deal for stock repurchases, the real value for the company lies in revitalizing its U.S. operations. Until there is more clarity on these strategic moves and their outcomes, maintaining a Hold rating seems prudent as it reflects a balanced view of the potential risks and rewards involved.
In another report released on June 23, TD Cowen also maintained a Hold rating on the stock with a $90.00 price target.