2017 wasn't the best for Starbucks Corporation (NASDAQ: SBUX) investors, as shares of the coffee chain are trading higher by just 3 percent for the year, but one Wall Street analyst is hopeful for 2018 and beyond.

The Analyst

Tigress Financial Partners' Ivan Feinseth initiated coverage of Starbucks' stock with a Buy.

The Thesis

Starbucks' management team is now refocusing its strategy to deliver growth through the enaction of new and improving initiatives, Feinseth said in the initiation note. (See the analyst's track record here.)

For example, the company continues to expand its product portfolio with a focus on health and wellness beverages, tea and food. Some of the new food and drink options are intended specifically to drive foot traffic during the later hours of the day.

Starbucks is also focusing on digital initiatives to improve the overall customer experience, increase mobile ordering and expand its loyalty program, Feinseth said. And the company is expanding mobile initiatives, which may be vital in driving future growth in China and the Asia Pacific region.

Investors should have confidence in Starbucks' management team, which boasts a "successful operating history" and can leverage its brand equity with new digital growth initiatives, the analyst said. This should drive "significant" increases in return on capital, improved economic profit and generate greater shareholder value, Feinseth said.

Starbucks shares have "significant upside" from today's levels, according to Tigress Financial.

Price Action

Starbucks closed Wednesday at $57.27.

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