Jefferies Raises Price Target on Starbucks (SBUX)
Jefferies reported on Monday that it has increased its price target on coffee company, Starbucks Corporation (SBUX).
The firm has maintained a “Buy” rating for SBUX, and has raised its price target from $60 to $66. This price target suggests a 12.5% upside from the stock’s current price of $57.69.
Analyst Andy Barish commented, “we knew 1Q13 compares would be difficult but the sharp traffic drop-off in Feb as guests’ wallets were squeezed was less expected. Many tempered ‘13 guidance, but the slowdown appears to have been largely ignored by the market; valuations have expanded as investors look past a choppy ’13 to more normalized EPS growth in ’14. We introduce ’14 ests but remain selective, and prefer those names with tangible SSS drivers and cost offsets.”
Starbucks shares were mostly flat during Monday morning trading. The stock has been mostly flat in the past year.
The Bottom Line
Shares of Starbucks Corporation (SBUX) have a 1.46% yield, based on Monday morning’s price of $57.63.
Starbucks Corporation (SBUX) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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