NEW YORK (TheStreet) -- Starbucks (SBUX) shares were upgraded to "buy" from "hold" by analysts at Belus Capital who set an $85 price target on the company's shares.
Despite concerns about the price of coffee in the near term, analysts at the firm believe that new beverage introductions will make up for any dip in sales due to higher prices.
The firm is also a fan of the company's plan to build flagship stores around the world as customers inside these superstores "will get a richer experience with the company's brands."
Starbucks shares are down slightly, -0.23 to $77.76, in early market trading today.
Separately, TheStreet Ratings team rates STARBUCKS CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate STARBUCKS CORP (SBUX) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."