Two analysts are battling it out over Starbucks(SBUX Quote), Cramer told viewers.On the same day an analyst from Friedman Billings upgraded the stock, an analyst from CIBC downgraded it. When two analysts argue, only one can come out the winner, Cramer said. In this case he's siding with the bears, he said. "CIBC is right, FBR is wrong."
According to Cramer, FBR's bullish case sounded like a reason to sell Starbucks. It cited various pressures the company is facing, and said Starbucks could be a nice addition for a few other companies. Basically, Cramer said, FBR recommended Starbucks on the likelihood that either its management changes or that it gets taken over.
If this is the best case for recommending the stock, he said he prefers CIBC's argument.
CIBC says Starbucks isn't a growth stock any more and suffers from a bad case of multiple contraction, Cramer said.
Starbucks once was a fantastic growth story, but the key word here is was, Cramer said. At first glance, people might see the current price as a good entry point for Starbucks, but Cramer sees the stock going lower.
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