Starbucks (NASDAQ:SBUX) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Wednesday, Zacks.com reports. The brokerage presently has a $86.00 price objective on the coffee company’s stock. Zacks Investment Research‘s target price suggests a potential upside of 10.60% from the company’s previous close.
According to Zacks, “Shares of Starbucks have outperformed the industry in the past six months. The momentum is likely to continue as the company reported solid second-quarter fiscal 2019 earnings and also raised its full-year view. Notably, earnings surpassed the estimates in all of the trailing four quarters. For fiscal 2019, non-GAAP EPS is expected to be $2.75-$2.79, up from $2.68-$2.73 mentioned earlier. Robust Americas and CAP comps too bode well. Meanwhile, Starbucks' business is rapidly growing in China, courtesy of innovative store designs, local product innovations and the success of MSR program. Also, operating fundamentals such as solid global footprint, successful innovations, best-in-class loyalty program and digital offerings are encouraging. Again, digital initiatives like mobile order/pay and delivery services can further stimulate robust sales trends. However, operating margin contraction over the past few quarters has been a major concern.”
Other equities research analysts have also issued research reports about the company. Barclays boosted their target price on Starbucks from $69.00 to $75.00 and gave the company an “equal weight” rating in a research note on Friday, April 26th. UBS Group downgraded Starbucks from a “buy” rating to a “neutral” rating and upped their target price for the stock from $72.00 to $78.00 in a report on Monday, April 8th. Piper Jaffray Companies upped their price target on Starbucks from $70.00 to $77.00 and gave the stock a “positive” rating in a research note on Friday, April 26th. Oppenheimer restated an “outperform” rating and issued a $72.00 price target (up previously from $70.00) on shares of Starbucks in a research note on Friday, January 25th. Finally, Wedbush upped their price target on Starbucks from $70.00 to $75.00 and gave the stock a “neutral” rating in a research note on Friday, April 26th. One research analyst has rated the stock with a sell rating, twelve have given a hold rating, fourteen have issued a buy rating and one has assigned a strong buy rating to the stock. Starbucks presently has an average rating of “Buy” and an average price target of $73.88.
Shares of NASDAQ SBUX traded up $0.70 during mid-day trading on Wednesday, hitting $77.76. The company had a trading volume of 317,323 shares, compared to its average volume of 7,165,279. The stock has a market cap of $93.07 billion, a PE ratio of 32.13, a price-to-earnings-growth ratio of 2.15 and a beta of 0.51. Starbucks has a 1 year low of $47.37 and a 1 year high of $78.80. The company has a debt-to-equity ratio of 7.73, a quick ratio of 0.67 and a current ratio of 0.94.
Starbucks (NASDAQ:SBUX) last posted its earnings results on Thursday, April 25th. The coffee company reported $0.60 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.56 by $0.04. Starbucks had a negative return on equity of 494.61% and a net margin of 11.87%. The business had revenue of $6.31 billion during the quarter, compared to analysts’ expectations of $6.33 billion. During the same period in the previous year, the business earned $0.53 earnings per share. The firm’s revenue was up 4.5% on a year-over-year basis. On average, sell-side analysts predict that Starbucks will post 2.78 EPS for the current year.
Hedge funds have recently modified their holdings of the stock. Paragon Capital Management LLC purchased a new position in Starbucks during the first quarter valued at approximately $29,000. Lake Point Wealth Management purchased a new position in Starbucks during the fourth quarter valued at approximately $25,000. Veritas Investment Management LLP purchased a new position in Starbucks during the fourth quarter valued at approximately $28,000. C J Advisory Inc purchased a new position in Starbucks during the first quarter valued at approximately $34,000. Finally, Highwater Wealth Management LLC purchased a new position in Starbucks during the fourth quarter valued at approximately $28,000. 74.73% of the stock is currently owned by institutional investors.
Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of specialty coffee worldwide. The company operates in four segments: Americas; China/Asia Pacific; Europe, Middle East, and Africa; and Channel Development. Its stores offer coffee and tea beverages, roasted whole bean and ground coffees, single-serve and ready-to-drink beverages, iced tea, and food and snacks; and various food products, such as pastries, breakfast sandwiches, and lunch items.
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