Bernstein reiterates Outperform rating on Starbucks stock at $100 target

Published 30/07/2025, 16:52
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Investing.com - Bernstein SocGen Group has reiterated an Outperform rating and $100.00 price target on Starbucks (NASDAQ:SBUX), currently trading at $92.91 with a market cap of $104.75 billion, citing the company’s menu innovation and operational progress. According to InvestingPro data, analyst targets range from $69 to $115.

The research firm expressed optimism about Starbucks’ new menu offerings, which it believes could attract new consumers with energy drinks, expand store utilization with afternoon food options, and generate higher tickets through items like protein cold foam and artisanal food.

Bernstein was also positively surprised by Starbucks’ planned labor investment of only $500 million, which was lower than the firm’s estimated $1 billion or more, along with the quick rollout of these initiatives.

The firm identified the upcoming Investor Day in the second quarter of 2026 as a potential stock catalyst, where Starbucks is expected to focus on its path to achieving 2019 margins and improving licensee economics.

While acknowledging the stock’s steep valuation and expectations for uneven appreciation linked to traffic fluctuations, Bernstein remains optimistic that Starbucks’ current initiatives will help the company "return to its past glory" for patient investors.

In other recent news, Starbucks reported its financial results for the third quarter of 2025, showing mixed outcomes. The company missed earnings per share expectations, posting $0.50 compared to the forecast of $0.65. However, revenue exceeded projections, reaching $9.5 billion against the expected $9.29 billion. In light of these results, BMO Capital raised its price target for Starbucks to $115, maintaining an Outperform rating, despite the earnings miss being partly due to one-time investments and tax items. UBS also adjusted its price target to $100, though it kept a Neutral rating, citing ongoing challenges in U.S. same-store sales. TD Cowen increased its price target to $95, based on anticipated lower labor costs, while maintaining a Hold rating. Stifel reiterated its Buy rating and $105 price target, emphasizing progress in Starbucks’ turnaround efforts. These developments reflect various analyst perspectives on Starbucks’ financial performance and strategic initiatives.

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