TD Cowen Reaffirms Hold Rating for Starbucks (NASDAQ:SBUX)

Key Points

• TD Cowen has reaffirmed a hold rating for Starbucks (NASDAQ:SBUX) with a target price of $95.00, suggesting a potential upside of 13.57% from the current stock price.
• Starbucks reported earnings of $0.50 EPS, missing the consensus estimate by $0.14, even though its revenue for the quarter was $9.46 billion, exceeding expectations.
• Currently, the stock holds a consensus rating of "Moderate Buy" with an average target price of $104.40, reflecting various analysts' adjustments on their ratings and price targets.

Starbucks (NASDAQ:SBUX - Get Free Report)'s stock had its "hold" rating reissued by equities research analysts at TD Cowen in a research report issued to clients and investors on Thursday,Benzinga reports. They presently have a $95.00 target price on the coffee company's stock. TD Cowen's target price indicates a potential upside of 13.57% from the stock's previous close.

SBUX has been the topic of several other research reports. Morgan Stanley reaffirmed an "overweight" rating and set a $103.00 target price (up previously from $95.00) on shares of Starbucks in a report on Wednesday, July 30th. Evercore ISI reaffirmed an "outperform" rating and set a $105.00 target price (up previously from $95.00) on shares of Starbucks in a report on Tuesday, June 24th. Citigroup reduced their target price on shares of Starbucks from $100.00 to $99.00 and set a "neutral" rating on the stock in a report on Wednesday, July 30th. Jefferies Financial Group lowered shares of Starbucks from a "hold" rating to an "underperform" rating and set a $76.00 price target on the stock. in a report on Thursday, July 17th. Finally, Stifel Nicolaus raised their price target on shares of Starbucks from $92.00 to $105.00 and gave the stock a "buy" rating in a report on Friday, July 11th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, eight have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $104.40.

Starbucks Stock Performance

Shares of SBUX stock traded down $0.62 on Thursday, hitting $83.65. 3,030,310 shares of the company's stock traded hands, compared to its average volume of 10,251,063. Starbucks has a one year low of $75.50 and a one year high of $117.46. The company's fifty day simple moving average is $88.87 and its 200 day simple moving average is $89.27. The stock has a market capitalization of $95.08 billion, a price-to-earnings ratio of 36.05, a P/E/G ratio of 5.12 and a beta of 1.00.

Starbucks (NASDAQ:SBUX - Get Free Report) last released its earnings results on Tuesday, July 29th. The coffee company reported $0.50 EPS 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 business had revenue of $9.46 billion for the quarter, compared to the consensus estimate of $9.29 billion. During the same period in the prior year, the business posted $0.93 EPS. Starbucks's revenue for the quarter was up 3.8% on a year-over-year basis. As a group, sell-side analysts anticipate that Starbucks will post 2.99 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Starbucks

A number of hedge funds have recently modified their holdings of SBUX. Napa Wealth Management purchased a new stake in Starbucks in the 1st quarter worth $1,435,000. Czech National Bank lifted its stake in Starbucks by 6.2% in the 1st quarter. Czech National Bank now owns 260,898 shares of the coffee company's stock worth $25,591,000 after purchasing an additional 15,132 shares in the last quarter. Personal CFO Solutions LLC lifted its stake in Starbucks by 125.5% in the 1st quarter. Personal CFO Solutions LLC now owns 9,254 shares of the coffee company's stock worth $908,000 after purchasing an additional 5,151 shares in the last quarter. First Manhattan CO. LLC. lifted its stake in Starbucks by 33.1% in the 1st quarter. First Manhattan CO. LLC. now owns 446,294 shares of the coffee company's stock worth $43,777,000 after purchasing an additional 111,015 shares in the last quarter. Finally, Fox Run Management L.L.C. purchased a new stake in Starbucks in the 1st quarter worth $998,000. 72.29% of the stock is currently owned by 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.

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