03:08 PM EDT, 04/23/2024 (MT Newswires) -- Starbucks' ( SBUX ) 2024 outlook will likely be affected by near-term pressures, but it remains well-positioned in the long term due to "strong customer brand affinity and an attractive growth profile," UBS said in a note emailed Tuesday.

Challenges in the US stem from protests related to Middle East conflict and pressure on consumer spending, while China's macro conditions and competition are adding to concerns, according to the note.

The firm said results from its survey on brand image, customer traffic, and sales trends and growth found Starbucks ( SBUX ) still has a strong brand reputation and opportunities to improve sales in the future.

UBS said it expects Starbucks ( SBUX ) to reduce its fiscal 2024 same-store sales and revenue growth. Earnings will also decrease as cost-saving measures will not be able to maintain the current earnings target, the firm added.

UBS reduced the price target for Starbucks ( SBUX ) to $95 from $105, while keeping the neutral rating.

Price: 87.94, Change: -0.25, Percent Change: -0.28