Citi Sees Continued Uncertainty around Starbucks (SBUX) Recovery, Cuts Target

Starbucks Corporation (NASDAQ:SBUX) is included among the 13 Best NASDAQ Dividend Stocks to Buy Now.

On February 1, Citi expert Jon Tower lowered his terms proposal connected Starbucks Corporation (NASDAQ:SBUX) to $92 from $94. The expert reiterated a Neutral standing connected the shares. The steadfast said questions inactive stay aft the company’s caller net study and capitalist event, leaving immoderate uncertainty astir the gait of its recovery.

During Starbucks’ fiscal Q1 2026 net call, Chairman and CEO Brian Niccol said the institution is making dependable advancement connected its Back to Starbucks plan. He said momentum is gathering crossed the business, and the turnaround is unfolding arsenic expected. The company’s precedence has been stabilizing and increasing revenue, with net betterment expected to follow. Niccol said planetary gross roseate 5% year-over-year to $9.9 billion. Comparable store income accrued 4%, reflecting stronger enactment crossed locations. Starbucks besides continued expanding its footprint, opening 128 nett caller coffeehouses worldwide during the quarter.

Operating borderline came successful astatine 10.1%, and net per stock reached $0.56. In North America, gross grew 3% to $7.3 billion. International markets delivered faster growth, with gross expanding 10% to $2.1 billion. These results amusement that request remains steady, though maturation varies by region. Niccol said higher transaction volumes are helping the institution place areas to amended its proviso chain. He noted that Starbucks is reviewing its paper and operations to marque definite products are disposable portion besides reducing waste. This is portion of a broader effort to amended efficiency.

He besides highlighted continued concern successful technology. Niccol pointed to the assignment of Anand Varadarajan arsenic Chief Technology Officer, saying the relation volition enactment improvements crossed Starbucks’ exertion platforms and assistance fortify operations implicit time.

Starbucks Corporation (NASDAQ:SBUX) is simply a planetary roaster, marketer, and retailer of specialty coffee. Its North America conception includes its operations successful the United States and Canada.

While we admit the imaginable of SBUX arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

READ NEXT: 14 Best Real Estate Stocks to Buy According to Hedge Funds and 14 Best Warren Buffett Dividend Stocks to Buy

Disclosure: None.