Starbucks, the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst Zachary Fadem from Wells Fargo maintained a Buy rating on the stock and has a $100.00 price target.
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Zachary Fadem has given his Buy rating due to a combination of factors that highlight Starbucks’ potential for growth despite current challenges. The company’s global comparable sales showed improvement, particularly in China where traffic increased by 9%. This, coupled with a positive shift in North American sales during September and October, indicates a promising start to the fiscal year 2026.
Fadem also points to several strategic initiatives that are beginning to bear fruit, such as the Green Apron program and the introduction of new products like protein cold foam and lattes, which are attracting new customers. Additionally, the company is seeing progress in its remodeling efforts, with early results showing encouraging improvements in sales and transactions. These factors, alongside the anticipated catalysts like the upcoming A-Day and continued growth in delivery sales, support the Buy rating for Starbucks’ stock.
Fadem covers the Consumer Cyclical sector, focusing on stocks such as Starbucks, Domino’s Pizza, and Brinker International. According to TipRanks, Fadem has an average return of 10.3% and a 61.52% success rate on recommended stocks.
In another report released yesterday, Stifel Nicolaus also reiterated a Buy rating on the stock with a $0.00 price target.