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Investing.com - Guggenheim raised its price target on Starbucks (NASDAQ:SBUX) stock to $90.00 from $79.00 on Thursday, while maintaining a Neutral rating on the coffee chain. With the stock currently trading at $92.76 and a market capitalization of $105.4 billion, InvestingPro analysis suggests the stock is slightly overvalued at current levels.
The price target increase comes despite Starbucks reporting fiscal third-quarter earnings per share of $0.50, below Guggenheim’s estimate of $0.58. The quarter included a 2% decline in U.S. comparable sales, which was generally in line with the firm’s expectations. The company maintains strong fundamentals with annual revenue of $36.3 billion, though InvestingPro data indicates net income is expected to decline this year.
Guggenheim lowered its fiscal 2026 EPS forecast for Starbucks to $2.45 from $2.65, noting that management indicated some ticket sales will decline in the fourth quarter despite easier year-over-year comparisons.
The firm adjusted its price target multiple on fiscal 2027 to 32x discounted 5% from the previous 28x discounted 10%, resulting in the new $90 target price.
Guggenheim maintained its Neutral rating, stating that while new CEO Brian Niccol’s strategy of reinvestment and operational efficiencies "generally makes sense," investors should be "compensated more substantially for the risk of earnings recovery" to justify a Buy rating.
In other recent news, Starbucks has garnered attention from several analyst firms following its fiscal third-quarter results. RBC Capital raised its price target for Starbucks to $110, maintaining an Outperform rating, citing improvements in North American traffic and overall operational performance. Piper Sandler also increased its price target to $105, following the company’s earnings call, while maintaining an Overweight rating. Despite Starbucks reporting earnings per share of $0.50, which missed consensus estimates by $0.15, BMO Capital raised its price target to $115, attributing part of the earnings miss to one-time investments and tax items. Bernstein reiterated its Outperform rating with a $100 price target, highlighting Starbucks’ menu innovation and operational progress. UBS raised its price target to $100, maintaining a Neutral rating, noting challenges in U.S. same-store sales and traffic trends that impacted margins and earnings. These developments reflect varied analyst perspectives on Starbucks’ recent financial performance and future potential.
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