Wells Fargo & Company Issues Pessimistic Forecast for Starbucks (NASDAQ:SBUX) Stock Price

Key Points

• Wells Fargo lowered its Starbucks price target from $125 to $120 while maintaining an “overweight” rating, implying approximately 21.5% upside from the prior close.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and average price target of $110.43, although JPMorgan and UBS also recently reduced their targets.
• Starbucks exceeded quarterly EPS and revenue expectations, but revenue declined 1.4% year over year. The stock traded near $98.73 with a high valuation, while insiders have recently sold shares and institutional investors own 72.29% of the company.

Starbucks (NASDAQ:SBUX - Get Free Report) had its price objective decreased by equities researchers at Wells Fargo & Company from $125.00 to $120.00 in a research report issued to clients and investors on Wednesday, Benzinga reports. The brokerage currently has an "overweight" rating on the coffee company's stock. Wells Fargo & Company's price target suggests a potential upside of 21.54% from the stock's previous close.

Other equities research analysts have also issued reports about the company. JPMorgan Chase & Co. decreased their target price on Starbucks from $112.00 to $105.00 and set an "overweight" rating for the company in a research report on Tuesday, September 29th. UBS Group reissued a "neutral" rating and issued a $105.00 price target (down from $112.00) on shares of Starbucks in a report on Thursday, October 8th. Piper Sandler increased their price target on shares of Starbucks from $110.00 to $120.00 and gave the company an "overweight" rating in a research report on Thursday, July 30th. Zacks Research downgraded shares of Starbucks from a "strong-buy" rating to a "hold" rating in a report on Monday, June 29th. Finally, Raymond James Financial reaffirmed an "outperform" rating on shares of Starbucks in a research report on Friday, October 9th. Twenty-four analysts have rated the stock with a Buy rating, twelve have given a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $110.43.

Starbucks Stock Down 0.6%

Starbucks stock opened at $98.73 on Wednesday. Starbucks has a 52 week low of $77.99 and a 52 week high of $110.51. The company's 50 day moving average price is $99.90 and its two-hundred day moving average price is $101.24. The stock has a market cap of $112.55 billion, a P/E ratio of 56.89, a P/E/G ratio of 1.41 and a beta of 0.98.

Starbucks (NASDAQ:SBUX - Get Free Report) last released its earnings results on Wednesday, July 29th. The coffee company reported $0.85 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.66 by $0.19. The company had revenue of $9.32 billion during the quarter, compared to analyst estimates of $9.17 billion. Starbucks had a negative return on equity of 34.10% and a net margin of 5.17%. Starbucks's quarterly revenue was down 1.4% on a year-over-year basis. During the same period in the prior year, the company posted $0.50 earnings per share. Starbucks has set its FY 2026 guidance at 2.550-2.650 EPS. On average, equities analysts anticipate that Starbucks will post 2.60 EPS for the current year.

Insiders Place Their Bets

In related news, CEO Brady Brewer sold 1,641 shares of the business's stock in a transaction dated Monday, October 5th. The stock was sold at an average price of $94.76, for a total value of $155,501.16. Following the sale, the chief executive officer directly owned 71,508 shares in the company, valued at approximately $6,776,098.08. The trade was a 2.24% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 6,099 shares of company stock valued at $627,135. Company insiders own 0.03% of the company's stock.

Hedge Funds Weigh In On Starbucks

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Robinhood Asset Management LLC purchased a new position in Starbucks during the 2nd quarter valued at about $10,187,000. Nykredit A S purchased a new stake in Starbucks in the 2nd quarter worth approximately $29,524,000. The Manufacturers Life Insurance Company bought a new stake in shares of Starbucks in the 2nd quarter worth approximately $61,404,000. Bank of America Corp DE purchased a new position in shares of Starbucks during the second quarter valued at approximately $1,581,287,000. Finally, Saudi Central Bank increased its stake in shares of Starbucks by 90.0% during the second quarter. Saudi Central Bank now owns 79,751 shares of the coffee company's stock valued at $8,150,000 after buying an additional 37,779 shares during the period. Institutional investors own 72.29% of the company's stock.

Trending Headlines about Starbucks

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: UBS expects Starbucks to deliver a quarterly beat, forecasting North American comparable-store sales growth of 7.5% versus the 6.7% consensus and fiscal fourth-quarter EPS of $0.77–$0.82, above the $0.72 consensus. The estimates suggest the turnaround is gaining traction. Starbucks expected to build on US sales momentum as investors eye 2027 outlook
• Positive Sentiment: The company’s planned fiscal 2027 technology overhaul is intended to improve store efficiency, labor productivity and margins while supporting its $2 billion cost-savings target. Successful execution could strengthen profitability and cash flow. Starbucks Eyes FY27 Tech Overhaul: Can It Improve Margins?
• Positive Sentiment: Starbucks recently raised its quarterly dividend to $0.63 per share, reinforcing its shareholder-return program. Investors are also watching whether the turnaround can improve results enough to support the company’s fiscal 2027 outlook. Learn Why The Bull Case For Starbucks Could Change Following Fourth Quarter Results
• Neutral Sentiment: Reports that Starbucks explored acquiring Chipotle drew attention but were subsequently denied. With no transaction announced, the rumor has limited direct financial impact, though investors may view a potential deal as a distraction from the core turnaround.
• Negative Sentiment: Expectations are elevated: Starbucks trades near $100, with a P/E ratio above 57, so a strong quarter or optimistic 2027 guidance may already be partly reflected in the valuation. Any signs that recent sales momentum is fading could pressure the shares.

About Starbucks

Starbucks Corporation is a global specialty coffee company headquartered in Seattle, Washington. Founded in 1971, the company operates and licenses coffeehouses under the Starbucks brand, serving brewed coffee, espresso beverages, teas, cold drinks, food, and other ready-to-consume products.

In addition to its company-operated and licensed stores, Starbucks sells packaged coffee, tea, and single-serve products through grocery retailers, convenience stores, and other distribution channels.

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