Starbucks (SBUX) – Investment Analysts’ Weekly Ratings Changes

Posted by: Karim Khaledi Posted date: March 13, 2013 In: Analyst Articles - Company Sum, Investing

A number of firms have modified their ratings and price targets on shares of Starbucks (NASDAQ: SBUX) recently:

Starbucks had its “buy” rating reaffirmed by analysts at TheStreet. They wrote, “Starbucks Corporation (SBUX) has been reiterated by TheStreet Ratings as a buy with a ratings score of A+ . The company’s strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company shows low profit margins.”
Starbucks had its price target raised by analysts at Morgan Stanley from $57.00 to $61.00. They now have an “overweight” rating on the stock.
Starbucks had its “neutral” rating reaffirmed by analysts at Zacks. They now have a $58.00 price target on the stock. Zacks‘ analyst wrote, “Starbucks’ fiscal-first quarter 2013 earnings of $0.57 per share were in line with the Zacks Consensus Estimate. Earnings increased 14% in the quarter, in line with management’s expectations as top-line growth of 11% and lower taxes made up for the unusual cost pressures in the quarter. Solid comps, strong holiday performance in the U.S, significant innovation, further expansion in China and Asia Pacific and continued momentum in the Channel Development segment drove the top-line growth. Overall, we are encouraged by Starbucks’ strong market standing, new product launches, rapid growth in China, the flourishing CPG business as well as the solid turnaround in its U.S. business. We believe that the company has compelling growth drivers like La Boulange, Verismo, Teavana and K-Cups to sustain earnings momentum in the next few quarters. However, poor sales in Europe due to the depressed macroeconomic conditions keep us on the sidelines. We therefore have a Neutral rating on the stock. “
Starbucks had its “outperform” rating reaffirmed by analysts at Oppenheimer. They now have a $62.00 price target on the stock.
Starbucks had its price target raised by analysts at Lazard Capital Markets from $64.00 to $69.00. They now have a “buy” rating on the stock.
Starbucks had its “buy” rating reaffirmed by analysts at Cleveland Research.

Shares of Starbucks traded up 0.63% during mid-day trading on Wednesday, hitting $58.65. Starbucks has a one year low of $43.04 and a one year high of $62.00. The stock’s 50-day moving average is currently $55.69. The company has a market cap of $43.946 billion and a P/E ratio of 31.35.

Starbucks Corporation is a roaster, marketer and retailer of coffee operating in 60 countries. The Company purchases and roasts coffees that it sells, along with handcrafted coffee, tea and other beverages and a variety of fresh food items, through Company-operated stores.

Get Analysts' Upgrades and Downgrades via Email - Stay on top of analysts' coverage with Analyst Ratings Network's FREE daily email newsletter that provides a concise list of analysts' upgrades and downgrades. Click here to register now.