Starbucks Corporation Stock Analysis:
Based on the stock projections made for Starbucks Corporation by 20 analysts, the company’s average 12-month target price is expected to be USD 97.77. The average analyst recommendation for Starbucks Corporation is Buy. Based on 8 positive and 4 negative signals, Stock Target Advisor’s own stock analysis of Starbucks Corporation is Slightly Bullish. The stock price of Starbucks Corporation was US$105 at the most recent close. The stock price of Starbucks Corporation changed by -1.30% over the previous week, +6.17% over the previous month, and +8.39% over the previous year.
Analyst coverage Change:
BTIG Research maintains Starbucks Corp. with a Buy rating and raises the target price on the company to $120 from $110.
Citigroup raises the target price on Starbucks (SBUX:NSD) to $111 from $93 and maintains the Neutral rating on the company’s stock.
Fundamental Stock Analysis:
High market capitalization:
This organization is among the top quartile and is one of the biggest in its industry. These businesses are typically more reliable.
Superior returns on risk:
In the top quartile, this stock has outperformed its sector rivals on a risk-adjusted basis over the course of at least a 12-month holding period.
For a hold duration of at least 12 months, the stock’s yearly returns have been stable and constant when compared to peers in its industry, and they are in the top quartile. Although stability is desirable, it can also restrict returns.
A high dividend yield:
The stock has outperformed its industry rivals over the past 5 years (for a hold duration of at least 12 months) and is in the top percentile in terms of average annual dividend returns. For investors seeking high income yields, this could be an excellent purchase, especially if it is excelling on a total return basis.
Superior capital efficiency:
In the last four quarters, firm management outperformed its counterparts in terms of return on invested capital, putting it in the top quartile.
Excellent return on assets:
The management of the company has outperformed its counterparts in terms of return on assets over the last four quarters, putting it in the top quartile.
A healthy cash flow:
The last four quarters saw positive total cash flow for the organization.
A positive free cash flow:
The last four quarters saw the company generate positive total free cash flow.
Excessively expensive in relation to earnings:
The stock is trading above the sector median and at a premium to its peers in terms of price to earnings.
Overpriced based on cash flow:
On a price to cash flow ratio, the stock is trading at a premium to that of its competitors. Its pricing is higher than the sector median. Whenever you are thinking about buying, go with prudence.
Priced excessively based on free cash flow:
On a price to free cash flow basis, the stock is trading at a premium to that of its competitors. Its pricing is higher than the sector median. Whenever you are thinking about buying, go with prudence.
Low Growth in Dividends:
In the preceding five years, this stock’s dividend growth was lower than the sector average.