TD Cowen Reaffirms "Buy" Rating for Starbucks (NASDAQ:SBUX)

Key Points

• TD Cowen reaffirmed its “Buy” rating on Starbucks and set a $120 price target, implying approximately 15.2% upside. Analysts overall maintain a “Moderate Buy” consensus with an average target of $110.58.
• Starbucks reported quarterly EPS of $0.85, beating the $0.66 consensus, while revenue reached $9.32 billion versus expectations of $9.17 billion. The company raised fiscal 2026 adjusted EPS guidance to $2.55–$2.65.
• Shares opened at $104.14 and are near their 52-week high, but investors face valuation and execution risks, including a high earnings multiple, ongoing service and food-availability challenges, and recent insider selling.

Starbucks (NASDAQ:SBUX - Get Free Report)'s stock had its "buy" rating reiterated by investment analysts at TD Cowen in a report released on Thursday,Benzinga reports. They presently have a $120.00 target price on the coffee company's stock. TD Cowen's target price suggests a potential upside of 15.23% from the stock's current price.

SBUX has been the subject of a number of other research reports. Evercore reissued an "outperform" rating on shares of Starbucks in a research report on Thursday. Royal Bank Of Canada lowered Starbucks from a "sector perform" rating to a "positive" rating in a research report on Thursday, May 14th. Robert W. Baird raised their price target on Starbucks from $112.00 to $117.00 and gave the stock an "outperform" rating in a research note on Wednesday, April 29th. Citigroup lifted their price target on Starbucks from $108.00 to $112.00 and gave the company a "neutral" rating in a report on Thursday. Finally, Weiss Ratings restated a "hold (c)" rating on shares of Starbucks in a report on Monday, July 20th. Nineteen investment analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $110.58.

Starbucks Stock Up 1.0%

SBUX 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 company has a market cap of $118.69 billion, a price-to-earnings ratio of 78.89, a PEG ratio of 2.05 and a beta of 0.98. The company has a 50 day moving average of $102.15 and a two-hundred day moving average of $98.92.

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

Insider Activity at Starbucks

In other news, CEO Brady Brewer sold 2,229 shares of Starbucks stock in a transaction that occurred on Monday, July 6th. The shares were sold at an average price of $104.00, for a total value of $231,816.00. Following the transaction, the chief executive officer owned 77,364 shares of the company's stock, valued at $8,045,856. This trade represents a 2.80% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 6,687 shares of company stock valued at $679,033 over the last 90 days. Company insiders own 0.03% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. Oak Thistle LLC acquired a new stake in Starbucks during the fourth quarter worth about $1,149,000. Wealth Enhancement Trust Services Inc. acquired a new stake in shares of Starbucks during the 4th quarter worth approximately $875,000. Third View Private Wealth LLC bought a new stake in shares of Starbucks during the fourth quarter valued at approximately $3,135,000. B. Metzler seel. Sohn & Co. AG raised its stake in shares of Starbucks by 36.4% in the fourth quarter. B. Metzler seel. Sohn & Co. AG now owns 88,374 shares of the coffee company's stock valued at $7,442,000 after purchasing an additional 23,589 shares in the last quarter. Finally, Jefferies Financial Group Inc. lifted its position in Starbucks by 94.5% in the fourth quarter. Jefferies Financial Group Inc. now owns 94,260 shares of the coffee company's stock worth $7,938,000 after purchasing an additional 45,794 shares during the period. 72.29% of the stock is currently owned by institutional investors and hedge funds.

More Starbucks News

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.

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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