Citi analyst Jon Tower lowered the firm’s price target on Starbucks (SBUX) to $96 from $99 and keeps a Neutral rating on the shares. The company’s pre-announcement alluded to many strategic discussions in the investment community, including the re-investment in stores, investments in labor and re-focusing on the in-store experience, potentially at the immediate expense of mobile transactions and sales. It sounds like additional sales-rebasing could happen and Citi expects a long-term growth algorithm more akin to global quick service peers rather than Starbucks’ recent targets, the analyst tells investors in a research note.
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