Starbucks Corp (SBUX) Received its Third Buy in a Row

By Carrie Williams

After KeyBanc and Merrill Lynch gave Starbucks Corp (NASDAQ: SBUX) a Buy rating last month, the company received another Buy, this time from Oppenheimer. Analyst Brian Bittner maintained a Buy rating on Starbucks Corp today and set a price target of $70. The company’s shares closed yesterday at $58.63.

Bittner wrote:

“In another lift to sentiment, SBUX delivered a strong F4Q18 print and solid ’19 guidance. The business in the two important segments (US and China) improved SSS via drivers that appear sustainable moving into ‘19. At same time, the meaningul Nestlé/CPG deal appears to be tracking ahead of schedule, with earnings accretion now hitting in 2020—a year ahead of plan. Altogether, these dynamics elevate mgmt’s credibility and make the debate around viability of long-term targets more interesting ahead of the 12/13 Analyst Day. Maintain Outperform and raise PT to $70 from $61.”

According to TipRanks.com, Bittner is a 5-star analyst with an average return of 10.5% and a 66.4% success rate. Bittner covers the Services sector, focusing on stocks such as Restaurant Brands International, Jack In The Box Inc, and Cheesecake Factory.

Currently, the analyst consensus on Starbucks Corp is a Moderate Buy with an average price target of $64.50.

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Based on Starbucks Corp’s latest earnings release for the quarter ending June 30, the company reported a quarterly net profit of $853 million. In comparison, last year the company earned revenue of $5.7 billion and had a net profit of $789 million.

Based on the recent corporate insider activity of 47 insiders, corporate insider sentiment is negative on the stock. Most recently, in September 2018, Myron E. Ullman, a Director at SBUX sold 99,166 shares for a total of $5,458,938.

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 provision of premier roaster, marketer, and retailer of specialty coffee. It operates through the following segments: Americas; China/Asia Pacific (CAP); Europe, Middle East, and Africa (EMEA); and Channel Development.