Wells Fargo analyst Zachary Fadem maintained a Buy rating on Starbucks (SBUX – Research Report) today and set a price target of $125.00.
Zachary Fadem has given his Buy rating due to a combination of factors that indicate potential growth and improvement for Starbucks. The company’s efforts to enhance customer experience through initiatives like the ‘4 Minute Promise’ show promising results, with a significant percentage of orders being fulfilled within the promised time. This suggests potential for increased customer satisfaction and sales growth.
Additionally, despite recent challenges such as a drop in stock price and macroeconomic concerns, Fadem sees a long-term turnaround opportunity. Starbucks is actively working on simplifying its organizational structure and improving operations, which could lead to higher earnings in the future. The company’s strategic initiatives, including order sequence tests and market rationalization, are expected to drive future growth and profitability.
In another report released on March 18, Robert W. Baird also maintained a Buy rating on the stock with a $114.00 price target.