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

Key Points

• Morgan Stanley raised Starbucks’ price target to $115 from $111 and maintained an “overweight” rating, implying approximately 10.4% upside. Analysts overall assign the stock a “Moderate Buy” consensus rating with a $110.58 average target.
• Starbucks exceeded quarterly expectations, reporting $0.85 in adjusted EPS versus $0.66 expected and $9.32 billion in revenue versus $9.17 billion expected. The company also raised fiscal 2026 adjusted EPS guidance to $2.55–$2.65.
• Despite stronger customer traffic and comparable-store sales, valuation and execution risks remain: shares trade near their 52-week high at a high earnings multiple, revenue declined 1.4% year over year, and recent insider selling adds caution.

Starbucks (NASDAQ:SBUX - Get Free Report) had its price objective upped by research analysts at Morgan Stanley from $111.00 to $115.00 in a research note issued to investors on Thursday. The firm presently has an "overweight" rating on the coffee company's stock. Morgan Stanley's target price suggests a potential upside of 10.43% from the stock's current price.

Several other research firms have also weighed in on SBUX. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Starbucks in a report on Monday, July 20th. BNP Paribas Exane assumed coverage on shares of Starbucks in a research note on Thursday, May 14th. They issued an "underperform" rating for the company. Wells Fargo & Company reaffirmed an "overweight" rating and set a $120.00 target price (up from $115.00) on shares of Starbucks in a report on Thursday, July 16th. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating on shares of Starbucks in a report on Wednesday, April 29th. Finally, Tigress Financial began coverage on shares of Starbucks in a report on Wednesday, April 15th. They set a "buy" rating and a $122.00 price target for the company. Nineteen investment analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $110.58.

Starbucks Stock Up 1.0%

Shares of Starbucks stock opened at $104.14 on Thursday. Starbucks has a 12-month low of $77.99 and a 12-month high of $109.23. The firm has a market capitalization of $118.69 billion, a PE ratio of 78.89, a price-to-earnings-growth ratio of 2.05 and a beta of 0.98. The stock's fifty day moving average is $102.15 and its 200-day moving average is $98.92.

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

Insider Buying and Selling

In other news, CEO Brady Brewer sold 2,229 shares of the stock in a transaction that occurred on Monday, July 6th. The stock was sold at an average price of $104.00, for a total value of $231,816.00. Following the completion of the transaction, the chief executive officer owned 77,364 shares of the company's stock, valued at approximately $8,045,856. This represents a 2.80% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 6,687 shares of company stock valued at $679,033 in the last ninety days. Company insiders own 0.03% of the company's stock.

Institutional Investors Weigh In On Starbucks

Institutional investors have recently modified their holdings of the business. Chicago Partners Investment Group LLC boosted its stake in shares of Starbucks by 3.5% during the second quarter. Chicago Partners Investment Group LLC now owns 28,258 shares of the coffee company's stock valued at $2,917,000 after purchasing an additional 955 shares during the period. Sumitomo Mitsui Trust Group Inc. raised its holdings in Starbucks by 0.6% in the second quarter. Sumitomo Mitsui Trust Group Inc. now owns 2,622,136 shares of the coffee company's stock worth $267,956,000 after purchasing an additional 16,675 shares in the last quarter. Sovran Advisors LLC lifted its position in Starbucks by 130.1% during the second quarter. Sovran Advisors LLC now owns 6,235 shares of the coffee company's stock valued at $643,000 after acquiring an additional 3,525 shares during the last quarter. Ethic Inc. grew its stake in Starbucks by 4.0% during the 2nd quarter. Ethic Inc. now owns 43,563 shares of the coffee company's stock worth $4,452,000 after buying an additional 1,671 shares during the last quarter. Finally, Westfuller Advisors LLC boosted its stake in Starbucks by 5.1% in the 2nd quarter. Westfuller Advisors LLC now owns 11,787 shares of the coffee company's stock worth $1,204,000 after purchasing an additional 574 shares in the last quarter. 72.29% of the stock is owned by hedge funds and other institutional investors.

Starbucks News Roundup

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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