Starbucks defended at BofA with China overhang seen turning around
JohnFScott/iStock Unreleased via Getty Images

Bank of America reiterated a positive view on Starbucks Corporation (SBUX
-1.8%) on its view the long-term strength should not be overlooked due to the COVID-driven near-term weakness in China.
Analyst Sara Senatore: "While we believe Starbucksâ comp weakness is a result of COVID restrictions, it has given rise to an increasing focus on the role of competition, particularly that of lower price local competitors. But just as there are lower price options in the US â traditional QSRs and coffee specialists alike â entry level price point options have long existed in China. But the quality of the product, strength of the brand and â critically important â the powerful digital/loyalty flywheel underpin Starbucksâ continued market leadership."
The firm kept an Outperform rating on SBUX and price objective of $135.
In other SBUX news, employees at a Starbucks (NASDAQ:SBUX) store in Mesa, Arizona became the first to outside of New York to vote in favor of unionization.
Starbucks (SBUX) currently trades below its 50-day, 100-day and 200-day moving averages.