Starbucks Gains on Buy Rating

Starbucks shares jump as Goldman Sachs resumes coverage of the coffee shop stock with a buy rating.
By Miriam Reimer ,

SEATTLE (

TheStreet

) --

Starbucks

(SBUX) - Get Report

shares jumped Thursday morning thanks to some favorable broker action.

Analysts from

Goldman Sachs

(GS) - Get Report

resumed coverage of the coffee shop powerhouse with a conviction buy list rating, setting a $44 price target on Starbucks shares.

>>Kraft Seeks Injunction Against Starbucks

Goldman said Starbucks has yet to reach a saturation point in the U.S. market, and the firm forecast healthy domestic new store growth that could extend through 2025.

The firm also said that Starbucks store traffic trends highly correlate with the

labor market, and expectations for the labor market to pick up somewhat in 2011 should offer further improvement.

Starbucks shares added 2.3% to trade at $32.60 ahead of midday.

>>Restaurant Stocks: Earnings to Watch

-- Written by Miriam Marcus Reimer in New York.

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