Stifel Upgrades Starbucks To Buy, Expects Comps To Hit 6%
Mark Astrachan of Stifel upgraded shares of Starbucks Corporation from Hold to Buy with a price target raised from $60 to $67 as the company's is expected to post strong same-store sales growth metrics for quarters to come.
According to Astrachan, Starbucks' U.S. comp store sales growth is expected to grow to at least 5 to 6 percent for at least the next four quarters beginning in the fiscal (June) third quarter. The analyst believes this figure is achievable given the company's beverage innovation, greater food options and new technology offerings including the mobile app. Outside of the United States, Astrachan is estimating Starbucks' global comps to grow "modestly below" the U.S. levels but still achieve a mid-sigle-digit.