Merrill Lynch Thinks Starbucks Corp.’s Stock is Going to Recover

By Ryan Adsit

Merrill Lynch analyst Joseph Buckley reiterated a Buy rating on Starbucks Corp. (NASDAQ: SBUX) today and set a price target of $67. The company’s shares opened today at $51.43, close to its 52-week low of $50.84.

According to TipRanks.com, Buckley is a 4-star analyst with an average return of 4.6% and a 56.6% success rate. Buckley covers the Services sector, focusing on stocks such as Red Robin Gourmet, Jack In The Box, and McDonald’s Corp.

Currently, the analyst consensus on Starbucks Corp. is Strong Buy and the average price target is $64, representing a 24.4% upside.

In a report released today, Jefferies also reiterated a Buy rating on the stock with a $65 price target.

Starbucks Corp.’s market cap is currently $75.92B and has a P/E ratio of 28.92. The company has a book value ratio of 13.2678.

Based on the recent corporate insider activity of 56 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of SBUX in relation to earlier this year. Most recently, in September 2016, Mellody Hobson, a Director at SBUX bought 32,654 shares for a total of $599,854.

Starbucks Corp. engages in the manufacture and sale of coffee and tea. It operates through the following segments: Americas; Europe, Middle East, and Africa; China/Asia Pacific; Channel Development; and Other. Its brand portfolio includes Starbucks Coffee, Seattle’s Best Coffee, Tazo Tea, Evolution Fresh, La Boulange, and Torrefazione Italia Coffee. The company was founded by Jerry Baldwin and Howard S. Schultz on November 4, 1985 and is headquartered in Seattle, WA.