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Jim Cramer: Starbucks Could Soon Hit $70

Starbucks reported a disappointing quarter, but Jim Cramer says it's worth sticking with the stock.
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Jim Cramer spoke exclusively with Action Alerts Plus club members about Starbucks (SBUX) .

Starbucks has been struggling to manage delivery of coffee to people who place their orders using their mobile phones because the pickup locations turn into crowded "mosh pits," Cramer said.

Cramer said of Starbucks that "even though China was unbelievably good, it didn't really matter because of the same mobile issues that had bedeviled Panera (PNRA) ." Panera, another chain of coffee and baked goods has gotten its ordering system under control, he said.

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And in the case of Starbucks, "I think the company is restoring order. And by the end of the third quarter we will know that things are now better. If that's the case the stock should go to $70."

Cramer noted that he had lightened up on Starbucks ahead of the earnings report, but he said now he would look to add shares at $58.