Starbucks (NASDAQ:SBUX) Given New $125.00 Price Target at Wells Fargo & Company

Key Points

• Wells Fargo raised Starbucks’ price target to $125 from $120 and maintained an “overweight” rating, implying roughly 20% upside from the previous close.
• Starbucks beat quarterly expectations with $0.85 adjusted EPS versus $0.66 expected and $9.32 billion in revenue versus $9.17 billion expected. The company raised fiscal 2026 adjusted EPS guidance to $2.55–$2.65 and expects 6% global comparable-sales growth.
• Analyst sentiment remains favorable, with a “Moderate Buy” consensus and a $110.58 average target, though elevated valuation, execution challenges and recent insider selling present risks.

Starbucks (NASDAQ:SBUX - Get Free Report) had its target price raised by Wells Fargo & Company from $120.00 to $125.00 in a report released on Thursday. The brokerage currently has an "overweight" rating on the coffee company's stock. Wells Fargo & Company's target price would suggest a potential upside of 20.03% from the stock's previous close.

A number of other equities analysts also recently weighed in on SBUX. Weiss Ratings reiterated a "hold (c)" rating on shares of Starbucks in a report on Monday, July 20th. TD Cowen raised shares of Starbucks from a "hold" rating to a "buy" rating and boosted their price objective for the company from $106.00 to $120.00 in a research report on Thursday, May 14th. Piper Sandler reiterated an "overweight" rating and issued a $110.00 price objective on shares of Starbucks in a research note on Wednesday, April 29th. The Goldman Sachs Group downgraded shares of Starbucks from a "neutral" rating to a "neutral" rating in a research report on Thursday, May 14th. Finally, BMO Capital Markets restated an "outperform" rating and set a $130.00 price target on shares of Starbucks in a report on Thursday. Nineteen analysts have rated the stock with a Buy rating, ten have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, Starbucks currently has an average rating of "Moderate Buy" and a consensus target price of $110.58.

Starbucks Stock Up 1.0%

SBUX opened at $104.14 on Thursday. The firm has a market capitalization of $118.69 billion, a P/E ratio of 78.89, a PEG ratio of 2.05 and a beta of 0.98. The stock has a fifty day moving average of $102.15 and a 200-day moving average of $98.92. Starbucks has a 12-month low of $77.99 and a 12-month high of $109.23.

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

Insider Activity

In other news, CEO Brady Brewer sold 2,229 shares of the business's stock in a transaction dated Monday, July 6th. The shares were sold at an average price of $104.00, for a total transaction of $231,816.00. Following the transaction, the chief executive officer owned 77,364 shares in the company, valued at approximately $8,045,856. The trade was a 2.80% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 6,687 shares of company stock worth $679,033. 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 company. Rachor Investment Advisory Services LLC bought a new stake in Starbucks during the fourth quarter worth about $25,000. Cornerstone Financial Management LLC acquired a new stake in shares of Starbucks in the fourth quarter valued at $25,000. Phillip James Consulting Co. bought a new position in shares of Starbucks in the fourth quarter valued at about $25,000. Entrust Financial LLC acquired a new position in Starbucks during the 4th quarter worth about $26,000. Finally, Tucker Asset Management LLC bought a new stake in Starbucks during the 4th quarter worth about $27,000. 72.29% of the stock is currently owned by institutional investors.

Key Headlines Impacting Starbucks

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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