A girl drinks ice coffee in a Starbucks coffee shop in Tianjin, China.
J.P. Morgan's downgrade of Starbucks didn't last for long. The firm said the coffee chain's management has a newfound confidence that is hard to ignore.
The firm upgraded shares of Starbucks to overweight from neutral and hiked its 12-month price target to $94 per share from $90 per share. J.P. Morgan met with Starbucks management and "sensed a new confidence in the team that showed the plan working."
J.P. Morgan downgraded Starbucks for the first time in 15 years of coverage in July because Starbucks' stock had rallied more than 90% in the past 12 months, which "exceeded expectations." That turned out to be a good call as the stock hit an all-time high on July 26 and fell from there. The stock is down 12% since the JP Morgan downgrade.