Analyst Peter Saleh from BTIG maintained a Buy rating on Starbucks and keeping the price target at $105.00.
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Peter Saleh has given his Buy rating due to a combination of factors related to Starbucks’ strategic restructuring efforts and financial outlook. The company announced the closure of approximately 500 underperforming stores in North America, which is part of its broader turnaround strategy. This move aligns with investor expectations and is seen as a necessary step to streamline operations and focus on more profitable locations.
Additionally, Starbucks is undergoing a significant corporate restructuring, reducing its corporate workforce by 10%, which is expected to improve operational efficiency. Despite the anticipated one-time charges related to these changes, the long-term financial health of the company is projected to benefit. Saleh maintains a price target of $105, supported by a valuation that considers Starbucks’ potential for traffic recovery and overall turnaround success.
In another report released on September 21, RBC Capital also maintained a Buy rating on the stock with a $110.00 price target.