By Colin Kellaher
Shares of Starbucks edged lower in early trading Friday after Goldman Sachs downgraded the stock on concerns about China.
Goldman's analysts, led by Karen Holthouse, said they have "incremental concerns" about China's macro economy and company's same-store-sales trajectory in the region. They noted recent red flags about China raised by Apple and McDonald's.
Goldman also noted that Starbucks shares have risen more than 50% since they were added to the "buy" list in December 2014. The analysts downgraded the stock to "neutral" from "buy" and cut their 12-month price target to $68 from $75.
The analysts said they are "reasonably confident" that digital engagement initiatives by the coffee chain can drive a more stable comp growth trajectory of 3% to 4% over the next few years.
Shares of Starbucks fell 2.4% to $62.63 in early trading Friday.
Write to Colin Kellaher at firstname.lastname@example.org