Oppenheimer Sticks to Their Buy Rating for Starbucks Corp (SBUX)

By Carrie Williams

Oppenheimer analyst Brian Bittner maintained a Buy rating on Starbucks Corp (SBUXResearch Report) yesterday and set a price target of $72. The company’s shares closed yesterday at $64.74.

Bittner commented:

“In a string of positive events since our June-’18 conference, SBUX has regained control of its investment story and shares have risen 37%. Delivering on a more streamlined corporate strategy and improved operational focus in US/China helped drive a second consecutive quarter of solid results. This along with more conservative long-term financial targets and more shareholder-friendly uses of capital keep us attracted to shares. We raise price target to $72 (from $70) and believe executing against easing comparisons could be next catalyst. Buy-side expectations for US SSS elevated into today’s print, so we expect a relatively subdued stock reaction during tomorrow’s trading.”

According to TipRanks.com, Bittner is a top 100 analyst with an average return of 11.2% and a 70.2% success rate. Bittner covers the Services sector, focusing on stocks such as Restaurant Brands International, Jack In The Box Inc, and Cheesecake Factory.

Starbucks Corp has an analyst consensus of Moderate Buy, with a price target consensus of $69.90, representing a 8.0% upside. In a report issued on January 18, RBC Capital also maintained a Buy rating on the stock with a $74 price target.

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Starbucks Corp’s market cap is currently $84.75B and has a P/E ratio of 20.17. The company has a Price to Book ratio of 72.47.

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Starbucks Corp. engages in the production, marketing, and retailing of specialty coffee. It operates through the following segments: Americas; China/Asia Pacific (CAP); Europe, Middle East, and Africa (EMEA); and Channel Development.