Citigroup Boosts Starbucks (NASDAQ:SBUX) Price Target to $112.00

Key Points

• Citigroup raised Starbucks’ price target to $112 from $108 while maintaining a neutral rating, implying approximately 7.55% upside from the current share price.
• Starbucks exceeded quarterly expectations with $0.85 adjusted EPS and $9.32 billion in revenue, prompting the company to raise fiscal 2026 EPS guidance to $2.55–$2.65.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average target of $110.58, though Starbucks’ elevated valuation and recent insider selling present risks.

Starbucks (NASDAQ:SBUX - Get Free Report) had its price target raised by stock analysts at Citigroup from $108.00 to $112.00 in a research report issued on Thursday. The firm presently has a "neutral" rating on the coffee company's stock. Citigroup's price objective points to a potential upside of 7.55% from the stock's current price.

A number of other equities research analysts have also commented on the company. Wedbush initiated coverage on Starbucks in a research report on Thursday, May 14th. They issued an "outperform" rating on the stock. Weiss Ratings restated a "hold (c)" rating on shares of Starbucks in a research note on Monday, July 20th. The Goldman Sachs Group lowered Starbucks from a "neutral" rating to a "neutral" rating in a research report on Thursday, May 14th. DA Davidson increased their target price on Starbucks from $97.00 to $102.00 and gave the company a "neutral" rating in a report on Wednesday, April 29th. Finally, Zacks Research downgraded Starbucks from a "strong-buy" rating to a "hold" rating in a research note on Monday, June 29th. Nineteen analysts have rated the stock with a Buy rating, ten have issued a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $110.58.

Starbucks Price Performance

Starbucks stock opened at $104.14 on Thursday. The firm has a 50-day moving average of $102.15 and a two-hundred day moving average of $98.92. Starbucks has a 1 year low of $77.99 and a 1 year high of $109.23. The stock has a market cap of $118.69 billion, a price-to-earnings ratio of 78.89, a price-to-earnings-growth ratio of 2.05 and a beta of 0.98.

Starbucks (NASDAQ:SBUX - Get Free Report) last posted its earnings results on Wednesday, July 29th. The coffee company reported $0.85 EPS for the quarter, beating analysts' consensus estimates of $0.66 by $0.19. Starbucks had a net margin of 3.89% and a negative return on equity of 29.24%. The business had revenue of $9.32 billion for the quarter, compared to the consensus estimate of $9.17 billion. During the same quarter last year, the firm posted $0.50 EPS. The company's revenue for the quarter was down 1.4% on a year-over-year basis. Starbucks has set its FY 2026 guidance at 2.550-2.650 EPS. Research analysts expect that Starbucks will post 2.41 earnings per share for the current year.

Insider Activity at Starbucks

In related news, CEO Brady Brewer sold 2,229 shares of Starbucks stock in a transaction on Monday, July 6th. The stock was sold at an average price of $104.00, for a total transaction of $231,816.00. Following the sale, the chief executive officer directly owned 77,364 shares in the company, valued at approximately $8,045,856. This trade represents a 2.80% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 6,687 shares of company stock valued at $679,033 over the last three months. Corporate insiders own 0.03% of the company's stock.

Institutional Trading of Starbucks

Several large investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. grew its stake in shares of Starbucks by 0.9% in the 4th quarter. Vanguard Group Inc. now owns 114,410,675 shares of the coffee company's stock worth $9,634,523,000 after buying an additional 971,773 shares in the last quarter. Capital World Investors boosted its holdings in Starbucks by 9.0% during the fourth quarter. Capital World Investors now owns 84,727,405 shares of the coffee company's stock worth $7,135,228,000 after buying an additional 7,007,268 shares in the last quarter. State Street Corp raised its holdings in Starbucks by 0.7% in the 4th quarter. State Street Corp now owns 47,869,056 shares of the coffee company's stock worth $4,031,053,000 after purchasing an additional 327,161 shares during the period. Geode Capital Management LLC lifted its stake in Starbucks by 0.9% in the 4th quarter. Geode Capital Management LLC now owns 26,373,084 shares of the coffee company's stock valued at $2,212,153,000 after buying an additional 225,168 shares in the last quarter. Finally, T. Rowe Price Investment Management Inc. boosted its holdings in shares of Starbucks by 65.9% during the 4th 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 purchasing an additional 7,725,547 shares during the last quarter. 72.29% of the stock is currently owned by institutional investors.

Starbucks News Roundup

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Strong customer demand: Global comparable-store sales rose 7.9%, exceeding the 5.7% consensus estimate, as comparable transactions increased 4.2%. North American revenue climbed 7% to approximately $7.4 billion. Faster service, new products and expanded food offerings appear to be bringing customers back. Starbucks Reports Q3 Fiscal Year 2026 Results
• Positive Sentiment: Earnings beat and raised guidance: Adjusted earnings were $0.85 per share versus the $0.66 analyst consensus, while revenue of $9.32 billion exceeded expectations of roughly $9.17 billion. Starbucks raised fiscal 2026 adjusted EPS guidance to $2.55–$2.65 from $2.25–$2.45 and now expects full-year global comparable sales growth of 6%. The guidance increase relies primarily on higher customer traffic rather than price increases. Starbucks raises full-year forecasts again
• Positive Sentiment: China operations less risky: The conversion of Starbucks’ China business into a licensed joint venture reduced reported revenue, which declined 1.4% year over year, but the transaction may reduce execution and capital risks in the market. International margins also improved. Starbucks: Upgrading to Hold
• Neutral Sentiment: Analyst views remain generally favorable: Analysts’ consensus rating is “Moderate Buy,” although at least one research report upgraded the stock only to “Hold,” reflecting a more balanced risk-reward view after its strong run.
• Negative Sentiment: Valuation and execution risks: With shares near their 52-week high and trading at an elevated earnings multiple, investors may demand continued improvement. Starbucks is still working to ensure food availability and maintain faster service, while weaker dividend coverage and recent insider selling add cautionary signals.

About Starbucks

Starbucks Corporation is a global coffeehouse chain and roaster that operates, licenses and franchises coffee shops and related retail businesses. Founded in Seattle, Washington in 1971 by Jerry Baldwin, Zev Siegl and Gordon Bowker, the company grew from a single store focused on whole-bean coffee and equipment into a broad consumer-facing brand. Howard Schultz, who joined the company later and served in senior leadership roles, is widely credited with transforming Starbucks into a mass-market specialty coffee retailer and expanding its footprint internationally.

Starbucks' core activities center on the retail sale of hot and cold specialty beverages, whole-bean and packaged coffees, teas and ready-to-drink products, along with complementary food items and merchandise such as mugs and brewing equipment.

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