In a report released today, Andrew Strelzik from BMO Capital maintained a Buy rating on Starbucks (SBUX – Research Report), with a price target of $100.00.
Andrew Strelzik has given his Buy rating due to a combination of factors that indicate Starbucks’s potential for a successful turnaround. Despite the recent earnings miss and extended timeline for recovery, there is confidence in the company’s strategic initiatives aimed at improving operations and efficiency. The pivot towards labor investments, such as the ‘Green Apron Initiative,’ has shown promising results in reducing wait times and enhancing service, which is expected to be rolled out across a significant number of stores.
Furthermore, there are signs of underlying growth with an increase in transaction growth across U.S. stores and positive comparable sales in a substantial portion of the system. While the immediate challenges are seen as cyclical, the long-term growth prospects under new leadership are viewed optimistically. The focus remains on the company’s ability to navigate through the current pressures and capitalize on its strategic initiatives for future growth.
In another report released today, BTIG also maintained a Buy rating on the stock with a $105.00 price target.