An employee pours water from a pot into a coffee filter at a Starbucks Corp. coffee shop in Phnom Penh, Cambodia on Monday, Oct. 24, 2016.
Taylor Weidman | Bloomberg | Getty Images
JPMorgan told investors to buy Starbucks shares on any pullbacks due to the company's long-term earnings growth potential. The analyst also said the coffee chain, which offers wages and benefits higher than the industry average, would attract strong employees if a Donald Trump–led economy causes some people to lose their health care.
Starbucks "remains a core holding even if 15-20% 5-year EPS target looks aggressive...ideally add to shares lower," wrote analyst John Ivankoe, who reiterated his overweight rating after a meeting with management.
"Our conclusion is that Starbucks remains an exceptional company with leading long-term growth prospects but we take a more conservative approach to long-term earnings growth."
