Brian Harbour, an analyst from Morgan Stanley, maintained the Buy rating on Starbucks. The associated price target remains the same with $105.00.
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Brian Harbour has given his Buy rating due to a combination of factors that highlight Starbucks’ steady progress and potential for growth. The recent quarter showed modest improvements in same-store sales both in the US and internationally, with global sales finally turning positive. This indicates that the company’s store and service changes are beginning to take effect, which supports a more optimistic outlook for the stock.
Despite some cost pressures, particularly from product and coffee expenses, the positive sales momentum in the US, driven by transaction growth and new initiatives like the Green Apron Service and protein drinks, provides a strong foundation for future performance. While bottom-line estimates have been slightly adjusted due to these costs, the overall trajectory remains promising, with opportunities for further operational efficiencies. Harbour’s analysis suggests that these factors, combined with the potential for improved margins and strategic initiatives, justify a Buy rating for Starbucks.
In another report released today, Piper Sandler also maintained a Buy rating on the stock with a $100.00 price target.