Starbucks (NASDAQ:SBUX) Price Target Lowered to $84.00 at Citigroup

Key Points

• Citigroup has lowered its price target for Starbucks from $99.00 to $84.00, maintaining a "neutral" rating on the stock which indicates a potential upside of 5.46% from its current price.
• Other analysts have mixed views, with Stifel Nicolaus raising their target to $105.00 and Cowen reissuing a "hold" rating, leading to an average rating of "Moderate Buy" with a consensus target of $102.96.
• Starbucks reported a missed earnings estimate of $0.50 per share against the $0.64 expected, despite a quarterly revenue increase of 3.8% year-over-year to $9.46 billion.

Starbucks (NASDAQ:SBUX - Get Free Report) had its price objective reduced by stock analysts at Citigroup from $99.00 to $84.00 in a research note issued to investors on Monday,Benzinga reports. The brokerage currently has a "neutral" rating on the coffee company's stock. Citigroup's price objective suggests a potential upside of 5.46% from the company's current price.

Several other equities research analysts have also recently weighed in on the company. Stifel Nicolaus upped their price target on Starbucks from $92.00 to $105.00 and gave the company a "buy" rating in a research report on Friday, July 11th. Cowen reissued a "hold" rating on shares of Starbucks in a research note on Tuesday, June 24th. TD Securities reissued a "hold" rating and issued a $90.00 target price on shares of Starbucks in a research note on Monday, June 23rd. Piper Sandler set a $105.00 price target on shares of Starbucks and gave the company an "overweight" rating in a research report on Wednesday, July 30th. Finally, CICC Research initiated coverage on shares of Starbucks in a report on Monday, June 30th. They issued an "outperform" rating and a $100.00 price target on the stock. One analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, ten have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $102.96.

Starbucks Price Performance

Shares of SBUX traded up $1.19 during midday trading on Monday, hitting $79.65. 4,710,460 shares of the company traded hands, compared to its average volume of 10,232,052. The stock has a 50-day moving average of $86.48 and a 200-day moving average of $87.87. Starbucks has a one year low of $75.50 and a one year high of $117.46. The firm has a market cap of $90.54 billion, a P/E ratio of 34.41, a PEG ratio of 3.89 and a beta of 1.01.

Starbucks (NASDAQ:SBUX - Get Free Report) last announced its quarterly earnings results 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). Starbucks had a net margin of 7.18% and a negative return on equity of 36.23%. The company had revenue of $9.46 billion for the quarter, compared to the consensus estimate of $9.29 billion. During the same quarter in the prior year, the company earned $0.93 earnings per share. The company's quarterly revenue was up 3.8% on a year-over-year basis. Sell-side analysts forecast that Starbucks will post 2.99 EPS for the current fiscal year.

Hedge Funds Weigh In On Starbucks

Several hedge funds and other institutional investors have recently modified their holdings of SBUX. Brighton Jones LLC lifted its holdings in shares of Starbucks by 86.5% during the 4th quarter. Brighton Jones LLC now owns 176,722 shares of the coffee company's stock valued at $16,126,000 after buying an additional 81,952 shares during the period. GAMMA Investing LLC increased its stake in Starbucks by 21.9% in the 1st quarter. GAMMA Investing LLC now owns 20,591 shares of the coffee company's stock worth $2,020,000 after buying an additional 3,703 shares in the last quarter. Wealth Enhancement Advisory Services LLC lifted its position in shares of Starbucks by 5.8% in the first quarter. Wealth Enhancement Advisory Services LLC now owns 472,776 shares of the coffee company's stock valued at $46,375,000 after acquiring an additional 25,809 shares in the last quarter. Missouri Trust & Investment Co grew its position in shares of Starbucks by 49.7% during the first quarter. Missouri Trust & Investment Co now owns 524 shares of the coffee company's stock worth $51,000 after purchasing an additional 174 shares in the last quarter. Finally, Dynamic Advisor Solutions LLC bought a new stake in Starbucks during the 1st quarter valued at approximately $819,000. 72.29% of the stock is owned by institutional investors.

Starbucks Company Profile

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.

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