Starbucks Corporation (SBUX): “This Is The Right Rime To Buy Starbucks,” Says Jim Cramer

We recently published 8 Stocks That Jim Cramer Recently Talked About. Starbucks Corporation (NASDAQ:SBUX) is one of the stocks Jim Cramer recently discussed.

Starbucks Corporation (NASDAQ:SBUX) is a stock that Jim Cramer frequently discusses on his morning show. The CNBC TV host is an avid fan of the firm’s CEO and has criticized the firm’s detractors. He commented on Jefferies cutting Starbucks Corporation (NASDAQ:SBUX)’s share price target and continued to remain optimistic about CEO Brian Niccol:

“[Jefferies cuts SBUX, says consumer credit card data shows weakness]” Oh they have that, yeah, I mean if Brian, do they not know, I mean they want you to, but they have a 76 dollar price target for Starbucks. Okay. Here’s what I think that they’re doing wrong. If that stock ever got to 76, it would be a wonderful thing. This is Brian Niccol. The turn is happening, how many times does he have to say it’s not happening today? So yes, maybe the buyers are ahead. But buyers want to be there before the turn. And when the turn happens, you’re not paying 76. I mean yesterday you could have bought PepsiCo, thinking that, everyone thinks that there’s no turn, and there was a turn. What do you do with Starbucks? Well I mean I think you can just say it’s high, it’s 80s to 90s, 80s to 90s, and then one day, it’s up a 120. So do you want to be 80s to 90s or do you really want to play it to 76?”

This show wasn’t by far the first time Cramer had praised Niccol:

“This morning, Starbucks came up as part of the conversation on Squawk on the Street as a source of coffee beans from Brazil, and what’s going to happen now that President Trump just hit Brazil with a 50% tariff. Ah, just one more reason to [sell, sell, sell] Starbucks, right? Wrong. The actual price of coffee beans represents less than 10% of the cost of a cup of coffee. Sure, Brazil’s important, but Starbucks, with its incredible scale, is better suited than anyone else to be able to deal with and find cheaper source of beans.

More important, Starbucks is another stock that people want to buy when it’s hot and stay away from when it’s cold, even if it’s being run by a proven commodity who knows how to execute a turnaround. I remember the turn that CEO Brian Niccol engineered at Chipotle before he went to Starbucks after some nasty foodborne illnesses sent the stock in a tailspin.

Niccol came in at the beginning of 2018 when Chipotle stock was at around $6, alright, keep that in your mind. He left for Starbucks a little less than a year ago when Chipotle was at $56. Are we really supposed to believe that the price of Brazilian coffee beans is going to reverse that turnaround that he’s organizing? I think that’s insane. Stock’s down more than 20 points from its high, even if it’s quickly rebounded from today’s low. This is the right time to buy Starbucks. Goes down a little more, you get to buy more.”

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Disclosure: None. This article is originally published at Insider Monkey.