From CNBC: 2024-06-13 16:07:14

Goldman Sachs initiated coverage of Starbucks with a buy rating and a $100 price target, anticipating over 25% upside. The firm sees signs of a stock bottom due to new digital initiatives to improve customer wait times. Despite optimism, Jim Cramer remains cautious and believes Starbucks is still facing challenges like slow throughput and tough competition.

Following disappointing fiscal second-quarter results, Starbucks faced a steep decline in store traffic and inability to meet demand. Analysts downgraded stock to a rating 2 with a $90 price target. CEO Laxman Narasimhan acknowledged issues but Jim Cramer criticized his optimism and questioned the ability to overcome challenges in the market.

While Goldman Sachs remains optimistic about Starbucks’ turnaround, concerns about slow throughput, underperforming drinks, competition, and backlash linger. Despite potential improvements, Jim Cramer urges caution and a wait-and-see approach before committing to any long-term investments in Starbucks.



Read more at CNBC:: Jim Cramer is still skeptical of Starbucks despite a Goldman Sachs buy call