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Starbucks Drops After Goldman Downgrade on China Growth Concerns

Martin Baccardax

shares were lower Friday after Goldman Sachs cut its rating on the stock to "neutral," citing concerns over the pace of growth in China, where the world's biggest coffee chain is targeting a significant expansion. Goldman analyst Karen House also clipped her price target on Starbucks by $7 to $68 a share, but said she remains "reasonably confident" the group's move to drive more digital engagement can support comparable sales growth in the United States of between 3% and 4%. Starbucks shares were down 1.4% to $63.32.