Jim Cramer's charitable trust has trimmed its stake in Starbucks (SBUX) - Get Starbucks Corporation Report ahead of the coffee giant's upcoming earnings report, but he thinks the stock could eventually rally to $70 a share from its current $61 or so.
"When expectations were at 2% to 3% growth and the stock was at $55, that was fine with me. But now expectations are for a minimum of 5% domestic store growth and the stock is at $61," Cramer said Wednesday during his monthly call with members of his Action Alerts PLUS club for investors.
Starbucks plans to report its latest results after the market closes Thursday. But Cramer said he's concerned that investors have already priced high expectations for 2017's second half into the stock. "I fear that the next two points could be down," he said.
However, he added that the company is trying to fix problems it's recently had with mobile ordering, where people who place orders online end up crowding Starbucks stores as they wait for their purchases.
"[It's] a big mosh pit where I pick up my coffee," Cramer said. But he added that when the company fixes that problem, "I think it will go to $70."
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At the time of publication,
, which Cramer co-manages as a charitable trust, was long SBUX.