Starbucks' (SBUX) Outperform Rating Reaffirmed at BMO Capital Markets

Key Points

• BMO Capital Markets has raised Starbucks' price target from $100.00 to $115.00, indicating a potential upside of 23.16% from its previous close.
• Starbucks reported $0.50 earnings per share for the latest quarter, missing analysts' expectations of $0.64, while revenue rose to $9.46 billion.
• The consensus rating for Starbucks is "Hold" with an average price target of $101.00, reflecting mixed opinions from various analysts.

Starbucks (NASDAQ:SBUX - Get Free Report)'s stock had its "outperform" rating reissued by stock analysts at BMO Capital Markets in a note issued to investors on Wednesday, MarketBeat.com reports. They presently have a $115.00 price objective on the coffee company's stock, up from their previous price objective of $100.00. BMO Capital Markets' target price indicates a potential upside of 32.40% from the company's current price.

SBUX has been the topic of several other reports. Sanford C. Bernstein increased their price target on shares of Starbucks from $90.00 to $100.00 and gave the company an "outperform" rating in a report on Wednesday, July 2nd. CICC Research started coverage on Starbucks in a report on Monday, June 30th. They issued an "outperform" rating and a $100.00 price objective on the stock. Evercore ISI reiterated an "outperform" rating and set a $105.00 price objective (up previously from $95.00) on shares of Starbucks in a research report on Tuesday, June 24th. JPMorgan Chase & Co. increased their price target on Starbucks from $100.00 to $105.00 and gave the stock an "overweight" rating in a research report on Wednesday. Finally, Citigroup restated a "neutral" rating and set a $100.00 price objective (up from $95.00) on shares of Starbucks in a research report on Monday, July 14th. Four analysts have rated the stock with a sell rating, eleven have assigned a hold rating and fifteen have given a buy rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $101.27.

Starbucks Price Performance

Shares of SBUX traded down $2.30 during mid-day trading on Wednesday, hitting $86.86. 16,093,198 shares of the company's stock were exchanged, compared to its average volume of 10,657,690. The company has a 50-day simple moving average of $91.68 and a 200 day simple moving average of $94.62. The company has a market cap of $98.71 billion, a PE ratio of 37.44, a P/E/G ratio of 6.54 and a beta of 1.02. Starbucks has a 52 week low of $72.72 and a 52 week high of $117.46.

Starbucks (NASDAQ:SBUX - Get Free Report) last released its quarterly earnings data on Tuesday, July 29th. The coffee company reported $0.50 earnings per share for the quarter, missing the consensus estimate of $0.64 by ($0.14). The firm had revenue of $9.46 billion for the quarter, compared to analyst estimates of $9.29 billion. Starbucks had a negative return on equity of 36.23% and a net margin of 7.18%. The firm's revenue for the quarter was up 3.8% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.93 earnings per share. On average, analysts anticipate that Starbucks will post 2.99 earnings per share for the current year.

Institutional Trading of Starbucks

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Vanguard Capital Wealth Advisors acquired a new position in Starbucks during the 4th quarter worth approximately $285,000. Czech National Bank raised its position in shares of Starbucks by 6.2% in the 1st quarter. Czech National Bank now owns 260,898 shares of the coffee company's stock worth $25,591,000 after buying an additional 15,132 shares during the period. Personal CFO Solutions LLC raised its holdings in Starbucks by 125.5% in the first quarter. Personal CFO Solutions LLC now owns 9,254 shares of the coffee company's stock valued at $908,000 after buying an additional 5,151 shares during the period. Treasurer of the State of North Carolina lifted its holdings in shares of Starbucks by 0.6% during the 4th quarter. Treasurer of the State of North Carolina now owns 498,511 shares of the coffee company's stock valued at $45,489,000 after acquiring an additional 3,130 shares in the last quarter. Finally, Norden Group LLC lifted its position in shares of Starbucks by 66.1% during the first quarter. Norden Group LLC now owns 30,219 shares of the coffee company's stock worth $2,964,000 after purchasing an additional 12,027 shares in the last quarter. Institutional investors and hedge funds own 72.29% of the company's stock.

About Starbucks

Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of coffee worldwide. The company operates through three segments: North America, International, and Channel Development. Its stores offer coffee and tea beverages, roasted whole beans and ground coffees, single serve products, and ready-to-drink beverages; and various food products, such as pastries, breakfast sandwiches, and lunch items.