BMO Capital analyst Andrew Strelzik has reiterated their bullish stance on SBUX stock, giving a Buy rating today.
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Andrew Strelzik has given his Buy rating due to a combination of factors that indicate a positive outlook for Starbucks. Despite a recent earnings miss, the company is showing significant signs of recovery, particularly in the U.S. market. The improvement in U.S. comparable sales for the fourth consecutive quarter, turning positive in September and continuing into October, highlights the effectiveness of Starbucks’ turnaround efforts.
Additionally, the full implementation of the Green Apron service model has enhanced operational efficiency and customer satisfaction, contributing to the positive momentum. While margins are currently under pressure due to investments and cost factors, the strategic focus on rebuilding top-line growth and the potential for earnings recovery in the coming years make Starbucks an attractive investment. Strelzik’s confidence is bolstered by Starbucks’ innovation agenda and leadership under Brian Niccol, which are expected to drive medium-to-long-term growth.
In another report released today, Bernstein also maintained a Buy rating on the stock with a $100.00 price target.