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Starbucks will thrive from its new products and better cost controls later this year, according to one top Wall Street firm.
In January, Starbucks reported disappointing first-quarter same-store sales growth of 2 percent compared to the 3 percent Wall Street consensus.
J.P. Morgan reiterated its overweight rating for Starbucks shares, predicting the chain will increase its profits by a double-digit percentage in the coming year.
"We believe Starbucks is an actionable idea here, as we sense the stress the Company felt over December, and into January, results has passed and that operational and sales initiatives are in place to allow a return to 3% comps in 2H18 and beyond," analyst John Ivankoe wrote in a note to clients Monday.