Starbucks (NASDAQ:SBUX) Coverage Initiated at Credit Suisse Group

Credit Suisse Group initiated coverage on shares of Starbucks (NASDAQ:SBUX) in a research report issued to clients and investors on Tuesday, Marketbeat Ratings reports. The brokerage set an “outperform” rating and a $92.00 price target on the coffee company’s stock. Credit Suisse Group’s price objective suggests a potential upside of 10.34% from the stock’s previous close.

Other equities research analysts also recently issued reports about the company. Wells Fargo & Co downgraded Starbucks from an “outperform” rating to a “market perform” rating and lowered their price target for the company from $83.00 to $80.00 in a report on Friday, April 26th. They noted that the move was a valuation call. Barclays boosted their price target on Starbucks from $69.00 to $75.00 and gave the company an “equal weight” rating in a report on Friday, April 26th. Bank of America set a $85.00 price target on Starbucks and gave the company a “buy” rating in a report on Friday, April 26th. Piper Jaffray Companies boosted their price target on Starbucks from $60.00 to $70.00 and gave the company a “neutral” rating in a report on Wednesday, April 10th. Finally, Evercore ISI assumed coverage on Starbucks in a report on Tuesday, June 11th. They issued an “in-line” rating and a $82.00 price target for the company. One investment analyst has rated the stock with a sell rating, ten have given a hold rating, fourteen have issued a buy rating and one has issued a strong buy rating to the company’s stock. The stock presently has a consensus rating of “Buy” and an average price target of $77.19.

SBUX stock opened at $83.38 on Tuesday. Starbucks has a 52-week low of $47.37 and a 52-week high of $85.20. The company has a quick ratio of 0.67, a current ratio of 0.94 and a debt-to-equity ratio of 7.73. The stock has a market cap of $102.04 billion, a P/E ratio of 34.45, a PEG ratio of 2.34 and a beta of 0.50. The business’s 50 day simple moving average is $79.83.

Starbucks (NASDAQ:SBUX) last issued its quarterly earnings results on Thursday, April 25th. The coffee company reported $0.60 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.56 by $0.04. Starbucks had a negative return on equity of 494.61% and a net margin of 11.87%. The business had revenue of $6.31 billion during the quarter, compared to the consensus estimate of $6.33 billion. During the same period in the previous year, the business earned $0.53 EPS. The business’s quarterly revenue was up 4.5% on a year-over-year basis. Equities research analysts anticipate that Starbucks will post 2.78 EPS for the current fiscal year.

In related news, Director Myron E. Ullman III sold 9,973 shares of the company’s stock in a transaction on Monday, June 3rd. The stock was sold at an average price of $76.12, for a total transaction of $759,144.76. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Lucy Lee Helm sold 10,000 shares of the company’s stock in a transaction on Wednesday, June 12th. The stock was sold at an average price of $83.00, for a total value of $830,000.00. Following the transaction, the executive vice president now owns 113,455 shares of the company’s stock, valued at $9,416,765. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 83,910 shares of company stock valued at $6,578,788. 3.98% of the stock is owned by company insiders.

Institutional investors and hedge funds have recently modified their holdings of the stock. Cipher Capital LP acquired a new position in Starbucks during the 4th quarter worth $2,261,000. Mark Sheptoff Financial Planning LLC acquired a new position in Starbucks during the 4th quarter worth $32,000. Mackay Shields LLC boosted its position in Starbucks by 55.0% during the 4th quarter. Mackay Shields LLC now owns 625,131 shares of the coffee company’s stock worth $40,259,000 after acquiring an additional 221,699 shares during the period. Hamel Associates Inc. boosted its position in Starbucks by 2.6% during the 1st quarter. Hamel Associates Inc. now owns 53,480 shares of the coffee company’s stock worth $3,976,000 after acquiring an additional 1,375 shares during the period. Finally, Smithfield Trust Co. boosted its position in Starbucks by 3.5% during the 1st quarter. Smithfield Trust Co. now owns 5,391 shares of the coffee company’s stock worth $400,000 after acquiring an additional 180 shares during the period. Hedge funds and other institutional investors own 71.60% of the company’s stock.

About Starbucks

Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of specialty coffee worldwide. The company operates in four segments: Americas; China/Asia Pacific; Europe, Middle East, and Africa; and Channel Development. Its stores offer coffee and tea beverages, roasted whole bean and ground coffees, single-serve and ready-to-drink beverages, iced tea, and food and snacks; and various food products, such as pastries, breakfast sandwiches, and lunch items.

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Analyst Recommendations for Starbucks (NASDAQ:SBUX)

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