Oppenheimer Releases a Buy Rating on Starbucks Corp

By Austin Angelo

In a report released today, Brian Bittner from Oppenheimer reiterated a Buy rating on Starbucks Corp (NASDAQ: SBUX), with a price target of $65. The company’s shares closed yesterday at $58.08.

Bittner commented:

“SBUX is highly controversial into a critical stretch for its investment case. It’s our top large-cap pick. We anticipate a multifaceted SSS improvement cycle into the June quarter (and beyond) at an attractive valuation. This intriguing setup is against ’17/’18 EPS estimates already harnessed at the bottom end of its 15-20% targeted algorithm. For 2Q17’s print (4/27 release), we expect in-line results and an unchanged outlook.”

According to TipRanks.com, Bittner is a top 100 analyst with an average return of 11.6% and a 69.8% success rate. Bittner covers the Services sector, focusing on stocks such as Restaurant Brands International, Buffalo Wild Wings, and Cheesecake Factory.

Currently, the analyst consensus on Starbucks Corp is Moderate Buy and the average price target is $63.60, representing a 9.5% upside.

In a report issued on April 4, BMO Capital also reiterated a Buy rating on the stock with a $62 price target.

Based on Starbucks Corp’s latest earnings report for the quarter ending December 31, the company posted quarterly revenue of $5.73 billion and quarterly net profit of $752 million. In comparison, last year the company earned revenue of $4.99 billion and had a net profit of $575 million.

Based on the recent corporate insider activity of 38 insiders, corporate insider sentiment is negative on the stock. Most recently, in February 2017, William W. Bradley, a Director at SBUX sold 113,346 shares for a total of $6,145,620.

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. 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.