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

Key Points

• Morgan Stanley raised its price target on Starbucks from $105 to $110 and kept an overweight rating, implying roughly a 6.2% upside from the prior close.
• Starbucks beat Q2 estimates with $0.50 EPS (vs. $0.44) and $9.53B revenue (vs. $9.09B) and set FY26 EPS guidance of $2.25–$2.45, supporting a consensus "Moderate Buy" and a ~$107.39 target.
• Risks remain as the stock trades at a high P/E (~85.5) with low net margin and negative GAAP ROE, while management flagged higher gas/utilities costs and intensifying competition as near‑term headwinds.

Starbucks (NASDAQ:SBUX - Get Free Report) had its price target increased by stock analysts at Morgan Stanley from $105.00 to $110.00 in a research note issued on Wednesday, MarketBeat reports. The brokerage currently has an "overweight" rating on the coffee company's stock. Morgan Stanley's target price points to a potential upside of 6.24% from the company's previous close.

A number of other analysts have also recently commented on the company. Citizens Jmp initiated coverage on Starbucks in a research report on Monday, March 30th. They set an "underperform" rating and a $84.00 target price on the stock. Wells Fargo & Company restated an "overweight" rating and set a $115.00 price target (up from $110.00) on shares of Starbucks in a research note on Wednesday. Mizuho lifted their price target on Starbucks from $86.00 to $95.00 and gave the stock a "neutral" rating in a research report on Monday, January 26th. Weiss Ratings reiterated a "hold (c)" rating on shares of Starbucks in a research note on Wednesday, April 22nd. Finally, Piper Sandler reissued an "overweight" rating and issued a $103.00 price objective (up from $100.00) on shares of Starbucks in a report on Friday, January 30th. Sixteen research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, Starbucks currently has a consensus rating of "Moderate Buy" and a consensus target price of $107.39.

Starbucks Price Performance

Shares of Starbucks stock traded up $6.26 during trading hours on Wednesday, hitting $103.54. The company had a trading volume of 3,147,228 shares, compared to its average volume of 8,573,724. The company's 50-day moving average is $96.15 and its two-hundred day moving average is $90.75. The company has a market cap of $117.96 billion, a P/E ratio of 85.49, a price-to-earnings-growth ratio of 2.08 and a beta of 0.95. Starbucks has a twelve month low of $75.50 and a twelve month high of $104.82.

Starbucks (NASDAQ:SBUX - Get Free Report) last announced its quarterly earnings results on Tuesday, April 28th. The coffee company reported $0.50 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 firm had revenue of $9.53 billion for the quarter, compared to analyst estimates of $9.09 billion. During the same period last year, the business earned $0.41 EPS. Starbucks'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. Sell-side analysts expect that Starbucks will post 2.31 EPS for the current year.

Insider Activity at Starbucks

In other news, CEO Brady Brewer sold 588 shares of the business's stock in a transaction that occurred on Friday, April 17th. The stock was sold at an average price of $100.00, for a total value of $58,800.00. Following the transaction, the chief executive officer owned 83,788 shares of the company's stock, valued at approximately $8,378,800. The trade was a 0.70% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Sara Kelly sold 2,500 shares of the company's stock in a transaction that occurred on 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 owned 59,609 shares of the company's stock, valued at $5,789,226.08. This trade represents a 4.03% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 6,958 shares of company stock valued at $667,464. 0.03% of the stock is owned by company insiders.

Hedge Funds Weigh In On Starbucks

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Norges Bank purchased a new position in Starbucks during the 4th quarter worth $1,232,650,000. Capital Research Global Investors boosted its holdings in shares of Starbucks by 11.4% in the third quarter. Capital Research Global Investors now owns 85,460,350 shares of the coffee company's stock valued at $7,229,968,000 after acquiring an additional 8,774,198 shares in the last quarter. T. Rowe Price Investment Management Inc. increased its stake in shares of Starbucks by 65.9% during the fourth 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 acquiring an additional 7,725,547 shares during the period. Capital World Investors increased its stake in shares of 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 acquiring an additional 7,007,268 shares during the period. Finally, Corient Private Wealth LLC raised its holdings in Starbucks by 146.6% during the second quarter. Corient Private Wealth LLC now owns 6,049,192 shares of the coffee company's stock worth $553,201,000 after purchasing an additional 3,596,014 shares in the last quarter. 72.29% of the stock is currently owned by hedge funds and other institutional investors.

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

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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