Starbucks (NASDAQ:SBUX) Given "Overweight" Rating at Morgan Stanley

Key Points

• Morgan Stanley has raised Starbucks' price target from $95.00 to $103.00, with an "overweight" rating, indicating a potential upside of 10.36% from the stock's previous close.
• Despite mixed ratings from various analysts, Starbucks holds a consensus rating of "Hold" with an average target price of $100.12.
• Starbucks reported earnings of $0.50 per share for the last quarter, which fell short of expectations, while its revenue increased by 3.8% year-over-year.

Starbucks (NASDAQ:SBUX - Get Free Report)'s stock had its "overweight" rating reaffirmed by equities research analysts at Morgan Stanley in a research report issued to clients and investors on Wednesday, MarketBeat reports. They presently have a $103.00 target price on the coffee company's stock, up from their prior target price of $95.00. Morgan Stanley's target price points to a potential upside of 19.95% from the stock's current price.

Other equities research analysts also recently issued research reports about the company. Sanford C. Bernstein increased their target price on Starbucks from $90.00 to $100.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 2nd. Citigroup restated a "neutral" rating and set a $100.00 target price (up previously from $95.00) on shares of Starbucks in a research report on Monday, July 14th. Cowen restated a "hold" rating on shares of Starbucks in a research report on Tuesday, June 24th. Wells Fargo & Company increased their target price on Starbucks from $100.00 to $105.00 and gave the stock an "overweight" rating in a research report on Wednesday. Finally, JPMorgan Chase & Co. increased their target price on Starbucks from $100.00 to $105.00 and gave the stock an "overweight" rating in a research report on Wednesday. Four analysts have rated the stock with a sell rating, eleven have issued a hold rating and fifteen have given a buy rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $101.27.

Starbucks Stock Performance

NASDAQ SBUX traded down $3.29 on Wednesday, hitting $85.87. 5,322,267 shares of the stock traded hands, compared to its average volume of 10,604,690. The business's fifty day moving average is $91.68 and its two-hundred day moving average is $94.62. Starbucks has a 12 month low of $72.72 and a 12 month high of $117.46. The firm has a market capitalization of $97.58 billion, a price-to-earnings ratio of 36.97, a PEG ratio of 6.54 and a beta of 1.02.

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

Institutional Trading of Starbucks

Several hedge funds have recently made changes to their positions in the business. University of Texas Texas AM Investment Management Co. purchased a new stake in Starbucks in the 4th quarter worth about $25,000. Game Plan Financial Advisors LLC purchased a new stake in Starbucks in the 2nd quarter worth about $25,000. Chelsea Counsel Co. purchased a new stake in Starbucks in the 2nd quarter worth about $26,000. Hughes Financial Services LLC purchased a new stake in Starbucks in the 1st quarter worth about $27,000. Finally, CBIZ Investment Advisory Services LLC raised its position in Starbucks by 125.2% in the 1st quarter. CBIZ Investment Advisory Services LLC now owns 286 shares of the coffee company's stock worth $28,000 after purchasing an additional 159 shares during the period. 72.29% of the stock is currently owned by hedge funds and other 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.