Starbucks (SBUX) has enlisted the help of FARM Rio to reignite interest in its coffee chain through a merchandise collaboration. Starting today, Starbucks customers in the U.S. and Canada can pick up drinkware featuring designs from FARM Rio at their local locations.
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The FARM Rio collection at Starbucks is designed to evoke the “joy of nature in full bloom.” There are five unique patterns customers can pick up, with options to purchase them on tumblers, cold cups, ceramic mugs, and water bottles. These will also come to stores in Brazil, select parts of Latin America, and the Caribbean beginning on May 20.
Starbucks has struggled recently as its luxury coffee loses its allure in a time of economic uncertainty. There have also been concerns that the chain has lost the identity that made it popular with consumers. This saw it bring in a new Chief Financial Officer last month to help put the chain back on track.
Analysts Haven’t Soured on SBUX Stock Yet
Despite its recent troubles, Starbucks continues to attract bullish analyst coverage. That includes a new rating and price target from five-star Evercore ISI analyst David Palmer yesterday. He reiterated a Buy rating for SBUX stock and set a $95 price target, representing a potential 10.40% upside for the shares.
SBUX stock secured a minor 0.39% gain on Tuesday, but still needs to increase investor morale and consumer interest if it hopes to recover from its 5.24% decline year-to-date. Even so, the shares are still up 13.28% over the past 52 weeks.
Is SBUX Stock a Buy, Hold, or Sell?
Turning to Wall Street, the analysts’ consensus rating for Starbucks is Moderate Buy, based on 15 Buy and eight Hold ratings over the last three months. With that comes an average SBUX stock price target of $94.74, representing a potential 10.16% upside for the company’s shares.
