In a report released yesterday, Andrew Charles from TD Cowen maintained a Hold rating on Starbucks, with a price target of $84.00.
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Andrew Charles has given his Hold rating due to a combination of factors impacting Starbucks. Despite positive signs in September and October, driven by the closure of underperforming locations, the overall industry remains challenging. The turnaround is expected to be non-linear, with concerns about a softening Gen Z market and increasing competition.
Furthermore, Charles’s earnings estimates for 2026-27 are below consensus, even with lower general and administrative expenses. Although there is some optimism with North America same-store sales showing improvement and the introduction of the protein beverage platform, these factors are balanced by the complexities of the broader market environment and operational challenges.