Argus, an investment firm, has upgraded its rating on Starbucks to "Buy".

Investment firm Argus raised its rating on Starbucks to Buy, seeing the recent stock price decline as a buying opportunity. While investors are concerned about economic issues that have slowed same-store sales in the restaurant industry, Argus believes these concerns may be overblown. The firm expects Starbucks' focus on digital improvements and brand marketing to benefit it.

Argus analyst John Staszak believes Starbucks' plans to simplify its menu and remodel stores will help attract more customers and boost same-store sales growth. He raised his EPS estimate for fiscal 2025 to $3.18 and expects it to reach $3.80 in fiscal 2026. These improvements, along with Starbucks' strong brand power, can support the coffee giant's long-term growth.

Argus also gave Starbucks a long Buy rating with a target price of $115, citing its attractive dividend yield, strong business outlook, and strategy of expanding stores rather than repurchasing stock. In fact, the company hasn't bought back stock since the fourth quarter of 2023.