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Investing.com - Piper Sandler has reduced its price target on Starbucks (NASDAQ:SBUX) stock to $100 from $105 while maintaining an Overweight rating following the coffee chain’s fourth-quarter fiscal 2025 earnings report. The stock currently trades at $83.72, significantly below its 52-week high of $117.46, with analysts’ targets ranging from $69 to $115.
The U.S. same-store sales came in approximately flat, meeting investor expectations, with the company reporting positive comparable sales in September driven by transaction growth that has continued into October. This comes as Starbucks posted modest revenue growth of 0.59% in the last twelve months, with InvestingPro data showing net income is expected to drop this year.
Piper Sandler noted several "positive nuggets of information" during the earnings call that indicate an ongoing recovery in Starbucks’ U.S. business, though the firm characterized this recovery as "relatively modest thus far."
China’s same-store sales were positive for the second consecutive quarter, marking another bright spot in the company’s performance amid what the analyst described as a "tough restaurant backdrop overall."
The research firm also referenced recent media reports suggesting Starbucks is moving closer to a potential resolution regarding an ownership stake in its China business, though the exact timing remains undetermined.
In other recent news, Starbucks Corporation reported its fourth-quarter earnings for 2025, revealing a mixed financial performance. The company missed analysts’ expectations for earnings per share (EPS), reporting $0.52 against a forecast of $0.56, a 7.14% shortfall. However, revenue exceeded forecasts, coming in at $9.57 billion compared to the anticipated $9.35 billion, marking a 2.35% surprise. Additionally, Bernstein SocGen Group has reiterated an Outperform rating and a $100 price target on Starbucks. The coffee giant is showing early signs of recovery in its North American operations. The Green Apron model, implemented in August, has already yielded positive results with comparable sales growth in September and October. This upward trajectory is notable as other brands face challenges, particularly in the morning segment. These developments highlight recent progress and challenges for Starbucks.
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