Goldman Sachs downgraded Starbucks (SBUX) to Neutral from Buy with a price target of $85, down from $103, following last night’s earnings report. The firm expects a slower-path to North America sales recovery with data pointing to incrementally slowing brand momentum. Despite CEO Brian Niccol’s changes, Goldman has yet to witness a meaningful improvement in net purchase intentions with the majority of drivers still in decline in March. The firm says Starbucks’ challenges are running across various consumer demographics. The company’s near-term challenges point to a longer path to meaningful sales acceleration, contends Goldman.
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