UBS Adjusts Starbucks Price Target Amid Brand Pres…
From Financial Modeling Prep: 2025-06-16 14:46:00
UBS raised Starbucks Corporation’s price target to $95 from $90, maintaining a Neutral rating due to weakened traffic and mixed sales in the U.S. market. The firm mentioned challenges from shifting consumer spending and brand perception but sees potential in Starbucks’ “Back to Starbucks” strategy to improve domestic transactions and long-term earnings.
UBS analysts highlighted concerns from their surveys, showing strong brand loyalty but decreased customer traffic due to value and competition issues. The firm emphasized the importance of Starbucks’ initiatives to revive growth and relevance in a competitive market. The price target increase reflects cautious optimism for gradual momentum restoration despite challenges.
Overall, UBS remains cautiously optimistic about Starbucks’ strategic execution potential to restore momentum, even though the path forward may be challenging. The slight price target boost to $95 reflects the firm’s belief in Starbucks’ ability to navigate through current challenges and regain growth in the future.
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