JPMorgan Chase & Co. Has Lowered Expectations for Starbucks (NASDAQ:SBUX) Stock Price

Key Points

• JPMorgan lowered Starbucks’ price target from $112 to $105 while maintaining an “overweight” rating, implying roughly 10% upside from the reported $95.49 share price.
• Analyst sentiment is mixed: Starbucks has an overall “Hold” consensus rating and an average price target of $110.48, despite numerous Buy recommendations.
• Starbucks exceeded quarterly earnings and revenue expectations, but revenue declined 1.4% year over year; shares remain below their 50-day and 200-day moving averages amid ongoing turnaround and cost pressures.

Starbucks (NASDAQ:SBUX - Get Free Report) had its price objective cut by research analysts at JPMorgan Chase & Co. from $112.00 to $105.00 in a research report issued to clients and investors on Tuesday, Benzinga reports. The brokerage currently has an "overweight" rating on the coffee company's stock. JPMorgan Chase & Co.'s price objective would indicate a potential upside of 9.96% from the stock's current price.

Several other research firms have also commented on SBUX. TD Cowen reissued a "buy" rating on shares of Starbucks in a research note on Monday, September 21st. UBS Group upped their price target on Starbucks from $105.00 to $112.00 and gave the company a "neutral" rating in a report on Thursday, July 30th. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and set a $126.00 price objective on shares of Starbucks in a research report on Thursday, July 30th. Seaport Research Partners began coverage on Starbucks in a research note on Wednesday, September 16th. They set a "neutral" rating for the company. Finally, Guggenheim began coverage on Starbucks in a report on Monday, August 3rd. They issued a "buy" rating on the stock. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, eleven have given a Hold rating and four have issued a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $110.48.

Starbucks Price Performance

Shares of SBUX traded up $0.22 during midday trading on Tuesday, reaching $95.49. The stock had a trading volume of 804,835 shares, compared to its average volume of 7,942,432. The company has a market capitalization of $108.86 billion, a P/E ratio of 54.88, a P/E/G ratio of 1.65 and a beta of 0.97. The firm's 50 day moving average price is $103.04 and its 200-day moving average price is $101.13. Starbucks has a 52 week low of $77.99 and a 52 week high of $110.51.

Starbucks (NASDAQ:SBUX - Get Free Report) last announced its earnings results on Wednesday, July 29th. The coffee company reported $0.85 earnings per share for the quarter, beating the consensus estimate of $0.66 by $0.19. Starbucks had a negative return on equity of 34.10% and a net margin of 5.17%.The business had revenue of $9.32 billion during the quarter, compared to analysts' expectations of $9.17 billion. During the same quarter last year, the business posted $0.50 earnings per share. The company's quarterly revenue was down 1.4% on a year-over-year basis. Starbucks has set its FY 2026 guidance at 2.550-2.650 EPS. On average, equities analysts forecast that Starbucks will post 2.62 earnings per share for the current year.

Insider Transactions at Starbucks

In other Starbucks news, CEO Brady Brewer sold 2,229 shares of the business's stock in a transaction on Friday, September 4th. The shares were sold at an average price of $105.60, for a total transaction of $235,382.40. Following the sale, the chief executive officer directly owned 73,149 shares of the company's stock, valued at $7,724,534.40. The trade was a 2.96% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 6,687 shares of company stock worth $703,450. 0.03% of the stock is owned by insiders.

Institutional Investors Weigh In On Starbucks

Several hedge funds have recently bought and sold shares of SBUX. BlackRock Inc. purchased a new position in Starbucks in the second quarter valued at about $8,504,509,000. Bank of America Corp DE bought a new stake in shares of Starbucks in the 2nd quarter valued at approximately $1,581,287,000. T. Rowe Price Investment Management Inc. increased its holdings in Starbucks by 65.9% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 19,447,854 shares of the coffee company's stock worth $1,637,704,000 after buying an additional 7,725,547 shares during the last quarter. Bank of New York Mellon Corp acquired a new position in Starbucks in the second quarter worth approximately $779,790,000. Finally, Capital World Investors raised its position in Starbucks by 9.0% during the fourth quarter. Capital World Investors now owns 84,727,405 shares of the coffee company's stock valued at $7,135,228,000 after acquiring an additional 7,007,268 shares in the last quarter. 72.29% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Starbucks

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Starbucks’ turnaround is reportedly bringing customers back, with improving traffic and operational initiatives supporting the recovery. However, investors will be watching whether margin improvement can offset elevated costs. Starbucks turnaround and customer recovery
• Positive Sentiment: The company plans to establish a global capability center in Chennai, India, and hire approximately 800 technology employees. The investment could improve digital capabilities and support Starbucks’ broader turnaround, although it is unlikely to materially affect near-term earnings. Starbucks India technology expansion
• Neutral Sentiment: Starbucks is closing roughly 250 underperforming North American stores, about 1% of its regional locations. Management says the closures are part of a portfolio reset rather than solely a response to weak sales, while capital is being redirected toward store retrofits and higher-performing locations. Starbucks store closures
• Negative Sentiment: The restructuring carries an estimated $300 million charge, includes a reduction in new-store guidance and comes as analysts highlight Starbucks’ cost and growth pressures. Those factors could weigh on near-term profitability and investor confidence. Starbucks restructuring and store closures
• Negative Sentiment: A nonprofit says many Starbucks plastic cold-drink cups placed in recycling bins ultimately went to landfills or incinerators, creating potential reputational, regulatory and sustainability risks. Starbucks recyclable cup criticism
• Negative Sentiment: Compared with McDonald’s, Starbucks is viewed as having a higher valuation and greater execution risk, which may limit upside until the turnaround produces more consistent results. McDonald’s versus Starbucks comparison

About Starbucks

Starbucks Corporation is a global specialty coffee company that operates coffeehouses and sells coffee, tea and other beverages, along with food products and merchandise. Its menu includes brewed coffee, espresso-based drinks, cold beverages, teas, bakery items and ready-to-eat food. Starbucks also markets packaged coffee, ready-to-drink beverages and related products through retail and grocery channels, often through licensing and other business partnerships.

Founded in Seattle in 1971, Starbucks expanded from a local coffee retailer into an international brand.

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