Stifel reiterates Buy rating on Starbucks stock, cites turnaround progress

Published 30/07/2025, 14:48
© Reuters.

Investing.com - Stifel maintained its Buy rating and $105.00 price target on Starbucks (NASDAQ:SBUX), currently trading at $91.93, following the company’s fiscal third-quarter update. According to InvestingPro data, analyst targets for the stock range from $69 to $115, with the company currently valued at $107.38 billion.

The firm highlighted accelerating progress in Starbucks’ "Back to Starbucks" turnaround initiative, which includes foundational operational changes and a robust innovation pipeline.

Starbucks plans to expedite the rollout of its Green Apron service model and Smart Queue Technology to all U.S. company-operated stores beginning in mid-August, after successful testing in 1,500 locations showed improvements in transaction growth, service speed, and partner engagement.

The coffee chain’s innovation is expected to accelerate in fiscal year 2026, with new menu platforms and digital enhancements planned for implementation.

While Starbucks has quantified necessary U.S. labor investments, Stifel noted the company did not provide details on potential G&A savings or same-store sales leverage that could offset these costs, adding that positive same-store sales in fiscal Q1 2026 should drive meaningful margin improvement.

In other recent news, Starbucks Corporation reported its financial results for the third quarter of 2025, displaying a mixed outcome. The company missed earnings per share (EPS) expectations, reporting $0.50 compared to the anticipated $0.65, a negative surprise of 23.08%. On a positive note, Starbucks’ revenue exceeded forecasts, reaching $9.5 billion, which was 2.26% above the expected $9.29 billion. These results indicate a strong revenue performance despite the earnings shortfall. Analysts had anticipated different figures, and the company’s performance has been closely watched by investors. The earnings announcement is a crucial development for stakeholders assessing Starbucks’ financial health. No analyst upgrades or downgrades were mentioned in relation to this earnings report. Investors continue to monitor Starbucks for further developments in its financial performance.

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