Wedbush Sticks to Their Hold Rating for Starbucks Corp

By Austin Angelo

In a report released today, Nick Setyan from Wedbush reiterated a Hold rating on Starbucks Corp (NASDAQ: SBUX), with a price target of $65. The company’s shares closed yesterday at $60.92.

Setyan said:

“The Wedbush View: We now view current 2017 and 2018 expectations as realistic and valuation as fair. Therefore, we are downgrading to NEUTRAL from OUTPERFORM. Recent outperformance reflects expectations for 2H:17 U.S. comp acceleration, in our opinion. SBUX is up 12.3% since 3/14 vs. 3.2% for the S&P 500, and is now within 7% of our price target. We believe this recent outperformance is predicated on expectations for a 2H U.S. comp reacceleration following signs of improving trends in March and April. P.”

According to TipRanks.com, Setyan is a 4-star analyst with an average return of 6.6% and a 62.6% success rate. Setyan covers the Services sector, focusing on stocks such as Popeyes Louisiana Kitchen, Jack In The Box Inc, and Buffalo Wild Wings.

Starbucks Corp has an analyst consensus of Strong Buy, with a price target consensus of $66.

The company has a one year high of $64.87 and a one year low of $50.84. Currently, Starbucks Corp has an average volume of 8.58M.

Based on the recent corporate insider activity of 40 insiders, corporate insider sentiment is negative on the stock. Earlier this month, Myron E. Ullman, a Director at SBUX sold 10,000 shares for a total of $633,700.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

Starbucks Corp. is a roaster, marketer and retailer of coffee. The company sells handcrafted coffee, tea and other beverages and a variety of fresh food items, including snack offerings, through company-operated stores. It operates through the following segments: Americas; China/Asia Pacific (CAP); Europe, Middle East, and Africa (EMEA); and Channel Development. The Americas, CAP, and EMEA segments include both company-operated and licensed stores. These segments also include certain foodservice accounts, primarily in Canada, Japan and the U.K. The Channel Development segment includes roasted whole bean and ground coffees, premium Tazo teas, Starbucks- and Tazo-branded single-serve products, a variety of ready-to-drink beverages, such as Frappuccino, Starbucks Doubleshot and Starbucks Refreshers beverages and other branded products sold worldwide through channels, such as grocery stores, warehouse clubs, specialty retailers, convenience stores and U.S. foodservice accounts. The company was founded by Jerry Baldwin and Howard S. Schultz on November 4, 1985 and is headquartered in Seattle, WA.