Starbucks Corporation Stock Forecast:
According to the forecast of 29 analysts, the average target price for Starbucks Corporation over the next 12 months is USD 111.83. The average analyst rating for the stock is Buy. Stock Target Advisor‘s analysis of Starbucks Corporation is Bullish based on 9 positive signals and 3 negative signals. The stock price at the last closing was USD 114.46, which is a change of +4.68% over the past week, +9.92% over the past month, and +51.86% over the last year.
Starbucks Corp. News:
Starbucks Corp, the world’s largest coffeehouse chain, reported a sharp recovery in business in China for its second quarter ended April 2, beating Wall Street estimates for quarterly profits. However, despite the positive results, shares fell in after-hours trading after the company did not lift its 2023 guidance.
The Seattle-based company posted a 3% rise in China comparable sales, which helped boost international sales by 7%, more than double the 2.94% increase estimated by analysts. This was a significant improvement compared to the previous year when the pandemic led to store closures and disrupted supply chains.
Globally, Starbucks’ comparable sales climbed 11%, outpacing analysts’ expectation of a 7.36% rise. The company attributed this success to customers visiting more often and spending more per trip. The earnings release also showed that the company earned 74 cents per share, beating estimates of 65 cents per share, when excluding one-time items.
Despite these strong results, the company did not raise its 2023 guidance, leading to a decline in shares in after-hours trading. This caution from Starbucks could be due to the ongoing uncertainties related to the pandemic and its impact on the global economy.
Starbucks has been focusing on expanding its presence in China, which is the company’s second-largest market after the United States. The company’s growth in China has been aided by the country’s recovery from the pandemic and an increased demand for premium coffee.
Analysts Coverage Change:
- Stephens (RANK #47) reiterates an “Equal-Weight” rating for Starbucks Corp. (SBUX:NSD). with a target price of $103.
- Wedbush Securities (RANK #34) reiterates a “Neutral” rating with a target price of $110.
- Credit Suisse Group (RANK #5) maintains an “Outperform” rating, and raises the target price to $128from $122.
- TD Cowen (RANK #33) reiterates an “Outperform” rating with a target price of $120.
- Robert W. Baird & Co. (RANK #29) raises their target price to $110 from $105.
- RBC (RANK #3) lowers their target price to $110 from $115.
- Barclays (RANK #6) maintains an “Overweight” rating and raise the target price to $127 from $123.
- Wells Fargo & Company (RANK #10) maintains an “Overweight” rating and raise their target price to $125 from $125.
- J.P. Morgan Chase & Co (RANK #4) maintains an “Overweight” rating and lowers their target price to $113 from $114.