Goldman Sachs analyst Jared Garber downgraded Starbucks to Neutral from Buy with a price target of $106, down from $112, following last night’s results. The analyst sees more limited upside to the stock as cost pressures continue to flow through due to commodity inflation and labor costs. Labor challenges related to higher wages along with impacts from staffing levels, turnover, and COVID-related sick pay will pressure Starbucks’ margins, Garber tells investors in a research note. He expects cost pressures will continue to pose a challenge to the company’s margin recovery and sees uncertainty around the sales contribution from China’s recovery.