Starbucks activist likely provides near-term floor, says Citi

Citi analyst Jon Tower believes reports of an activist building a position in Starbucks likely provides a near-term floor for the shares. However, a fix will not prove easy, with more difficult decisions likely necessary around the growth algorithm, investments and core market strategies that could potentially hit sales and profits, the analyst tells investors in a research note. Citi keeps a Neutral rating on Starbucks with an $80 price target.