Starbucks (NASDAQ:SBUX) Stock Price Expected to Rise, Citigroup Analyst Says

Key Points

• Q2 beat and guidance boost: Starbucks reported revenue of $9.53B and EPS of $0.50 (above estimates) and set FY26 EPS guidance at 2.250–2.450, driving a ~6.4% intraday jump to $103.54.
• Analyst reaction: Citigroup raised its price target to $101 but kept a "neutral" rating (implying ~2.45% downside), while the consensus across analysts is a "Moderate Buy" with an average target of $107.39.
• Risks remain: Valuation and fundamentals give some investors pause—SBUX trades at a high P/E (~85.5), has low net margin and negative GAAP ROE—and insiders have recently sold shares.

Starbucks (NASDAQ:SBUX - Get Free Report) had its price objective boosted by stock analysts at Citigroup from $99.00 to $101.00 in a research report issued on Wednesday. The firm presently has a "neutral" rating on the coffee company's stock. Citigroup's price objective indicates a potential downside of 2.45% from the company's current price.

Other research analysts have also recently issued research reports about the stock. DA Davidson upped their price target on shares of Starbucks from $97.00 to $102.00 and gave the stock a "neutral" rating in a report on Wednesday. Weiss Ratings reissued a "hold (c)" rating on shares of Starbucks in a research note on Wednesday, April 22nd. Royal Bank Of Canada restated a "sector perform" rating and issued a $110.00 target price (up from $105.00) on shares of Starbucks in a research note on Wednesday. Mizuho raised their price target on Starbucks from $86.00 to $95.00 and gave the company a "neutral" rating in a report on Monday, January 26th. Finally, Sanford C. Bernstein reiterated an "outperform" rating on shares of Starbucks in a research report on Wednesday, March 4th. Sixteen analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $107.39.

Starbucks Stock Up 6.4%

NASDAQ:SBUX traded up $6.26 during mid-day trading on Wednesday, hitting $103.54. 3,147,228 shares of the stock traded hands, compared to its average volume of 8,573,724. The business's 50-day moving average price is $96.15 and its 200 day moving average price is $90.75. The company has a market cap of $117.96 billion, a PE ratio of 85.49, a price-to-earnings-growth ratio of 2.08 and a beta of 0.95. Starbucks has a 12-month low of $75.50 and a 12-month high of $104.82.

Starbucks (NASDAQ:SBUX - Get Free Report) last posted its earnings results on Tuesday, April 28th. The coffee company reported $0.50 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.44 by $0.06. Starbucks had a net margin of 3.63% and a negative return on equity of 28.66%. The business had revenue of $9.53 billion for the quarter, compared to analysts' expectations of $9.09 billion. During the same period in the prior year, the company posted $0.41 EPS. The business's revenue for the quarter was up 8.8% compared to the same quarter last year. Starbucks has set its FY 2026 guidance at 2.250-2.450 EPS. Analysts anticipate that Starbucks will post 2.31 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Starbucks news, CEO Brady Brewer sold 1,641 shares of the firm's stock in a transaction dated Thursday, March 5th. The stock was sold at an average price of $97.12, for a total transaction of $159,373.92. Following the sale, the chief executive officer owned 86,605 shares in the company, valued at $8,411,077.60. This trade represents a 1.86% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Sara Kelly sold 2,500 shares of Starbucks stock in a transaction dated Thursday, March 5th. The stock was sold at an average price of $97.12, for a total value of $242,800.00. Following the sale, the executive vice president directly owned 59,609 shares of the company's stock, valued at approximately $5,789,226.08. This trade represents a 4.03% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 6,958 shares of company stock worth $667,464. 0.03% of the stock is owned by insiders.

Institutional Trading of Starbucks

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Collier Financial bought a new stake in shares of Starbucks in the 3rd quarter worth approximately $25,000. Rachor Investment Advisory Services LLC bought a new position in shares of Starbucks during the 4th quarter valued at $25,000. Cornerstone Financial Management LLC purchased a new position in Starbucks in the 4th quarter worth $25,000. Phillip James Consulting Co. purchased a new position in Starbucks in the 4th quarter worth $25,000. Finally, Y.D. More Investments Ltd bought a new stake in Starbucks in the third quarter worth $26,000. Hedge funds and other institutional investors own 72.29% of the company's stock.

Key Headlines Impacting Starbucks

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Q2 results beat expectations — revenue of ~$9.5B and EPS $0.50, U.S. comparable‑store sales up ~6.2%, and management raised FY26 EPS and comp guidance, signaling the turnaround is gaining traction. Starbucks tops quarterly sales estimates as CEO's turnaround gains momentum
• Positive Sentiment: Analysts bumped targets and reiterated buys after the print — Robert W. Baird to $117, BTIG to $115 and other firms lifting outlooks, providing fresh upside from current levels. Analysts raise price targets on Starbucks
• Neutral Sentiment: CEO Brian Niccol and coverage emphasize that the “turn in the turnaround” is driven by service, store experience and product innovation — a multi‑year strategy that appears to be resonating with U.S. traffic. ‘A little touch of luxury, it goes a long way’: Starbucks CEO sees the turn in the turnaround as human touch sings
• Neutral Sentiment: Product expansion (e.g., Energy Refreshers, more customizable, non‑coffee options) supports revenue diversification but is still early in contribution. Your morning coffee is becoming optional at Starbucks
• Negative Sentiment: Management flagged higher gas and utility costs as a near‑term headwind; margins remain under scrutiny despite operating‑leverage improvements. Starbucks Reports Strong Store Traffic and Rise in Quarterly Sales
• Negative Sentiment: Competitive pressure — fast‑food rivals (e.g., McDonald’s) are expanding beverage menus, which could limit pricing/promotion power over time. McDonald's takes aim at Starbucks with new drinks menu
• Negative Sentiment: Valuation and fundamentals still give some investors pause — SBUX trades at a high P/E and shows a low net margin / negative ROE on GAAP metrics, so upside is being weighed against execution risk. Starbucks press release and financials

Starbucks Company Profile

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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