Citigroup Forecasts Strong Price Appreciation for Starbucks (NASDAQ:SBUX) Stock

Starbucks (NASDAQ:SBUX) had its price objective lifted by analysts at Citigroup from $108.00 to $112.00 in a report released on Thursday. The brokerage currently has a “neutral” rating on the coffee company’s stock. Citigroup’s price objective points to a potential upside of 7.55% from the company’s previous close.

A number of other analysts have also recently weighed in on SBUX. Piper Sandler reiterated an “overweight” rating and issued a $110.00 price target on shares of Starbucks in a research report on Wednesday, April 29th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Starbucks in a report on Monday, July 20th. JPMorgan Chase & Co. boosted their price objective on shares of Starbucks from $95.00 to $100.00 and gave the company an “overweight” rating in a report on Friday, April 24th. Morgan Stanley reissued an “overweight” rating and set a $111.00 price target (up from $110.00) on shares of Starbucks in a report on Wednesday, July 15th. Finally, Tigress Financial started coverage on Starbucks in a report on Wednesday, April 15th. They set a “buy” rating and a $122.00 target price on the stock. Nineteen research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, Starbucks presently has a consensus rating of “Moderate Buy” and a consensus price target of $110.58.

Starbucks Trading Up 1.0%

Shares of SBUX opened at $104.14 on Thursday. The stock has a 50 day moving average of $102.15 and a 200-day moving average of $98.92. The firm has a market cap of $118.69 billion, a price-to-earnings ratio of 78.89, a PEG ratio of 2.05 and a beta of 0.98. Starbucks has a 52 week low of $77.99 and a 52 week high of $109.23.

Starbucks (NASDAQ:SBUX) last issued its quarterly earnings results on Wednesday, July 29th. The coffee company reported $0.85 earnings per share for the quarter, topping analysts’ consensus estimates of $0.66 by $0.19. Starbucks had a negative return on equity of 29.24% and a net margin of 3.89%.The firm had revenue of $9.32 billion for the quarter, compared to analysts’ expectations of $9.17 billion. During the same quarter last year, the business posted $0.50 EPS. Starbucks’s revenue was down 1.4% on a year-over-year basis. Starbucks has set its FY 2026 guidance at 2.550-2.650 EPS. On average, sell-side analysts predict that Starbucks will post 2.41 earnings per share for the current fiscal year.

Insider Activity at Starbucks

In related news, CEO Brady Brewer sold 2,229 shares of the company’s stock in a transaction dated Monday, July 6th. The shares were sold at an average price of $104.00, for a total transaction of $231,816.00. Following the transaction, the chief executive officer directly owned 77,364 shares in the company, valued at approximately $8,045,856. This represents a 2.80% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 6,687 shares of company stock valued at $679,033. 0.03% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Starbucks

Institutional investors have recently added to or reduced their stakes in the business. Norges Bank acquired a new position in shares of Starbucks in the 4th quarter valued at about $1,232,650,000. T. Rowe Price Investment Management Inc. lifted its holdings in Starbucks by 65.9% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 19,447,854 shares of the coffee company’s stock valued at $1,637,704,000 after acquiring an additional 7,725,547 shares during the last quarter. Capital World Investors lifted its holdings in shares of Starbucks by 9.0% in the 4th quarter. Capital World Investors now owns 84,727,405 shares of the coffee company’s stock worth $7,135,228,000 after acquiring an additional 7,007,268 shares during the last quarter. Corient Private Wealth LLC lifted its position in shares of Starbucks by 146.6% during the second quarter. Corient Private Wealth LLC now owns 6,049,192 shares of the coffee company’s stock worth $553,201,000 after purchasing an additional 3,596,014 shares in the last quarter. Finally, Assenagon Asset Management S.A. increased its holdings in Starbucks by 483.8% during the 2nd quarter. Assenagon Asset Management S.A. now owns 3,182,890 shares of the coffee company’s stock worth $325,260,000 after purchasing an additional 2,637,715 shares during the period. Institutional investors and hedge funds own 72.29% of the company’s stock.

Starbucks News Roundup

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Strong customer demand: Global comparable-store sales rose 7.9%, exceeding the 5.7% consensus estimate, as comparable transactions increased 4.2%. North American revenue climbed 7% to approximately $7.4 billion. Faster service, new products and expanded food offerings appear to be bringing customers back. Starbucks Reports Q3 Fiscal Year 2026 Results
• Positive Sentiment: Earnings beat and raised guidance: Adjusted earnings were $0.85 per share versus the $0.66 analyst consensus, while revenue of $9.32 billion exceeded expectations of roughly $9.17 billion. Starbucks raised fiscal 2026 adjusted EPS guidance to $2.55–$2.65 from $2.25–$2.45 and now expects full-year global comparable sales growth of 6%. The guidance increase relies primarily on higher customer traffic rather than price increases. Starbucks raises full-year forecasts again
• Positive Sentiment: China operations less risky: The conversion of Starbucks’ China business into a licensed joint venture reduced reported revenue, which declined 1.4% year over year, but the transaction may reduce execution and capital risks in the market. International margins also improved. Starbucks: Upgrading to Hold
• Neutral Sentiment: Analyst views remain generally favorable: Analysts’ consensus rating is “Moderate Buy,” although at least one research report upgraded the stock only to “Hold,” reflecting a more balanced risk-reward view after its strong run.
• Negative Sentiment: Valuation and execution risks: With shares near their 52-week high and trading at an elevated earnings multiple, investors may demand continued improvement. Starbucks is still working to ensure food availability and maintain faster service, while weaker dividend coverage and recent insider selling add cautionary signals.

About Starbucks

Starbucks Corporation is a global coffeehouse chain and roaster that operates, licenses and franchises coffee shops and related retail businesses. Founded in Seattle, Washington in 1971 by Jerry Baldwin, Zev Siegl and Gordon Bowker, the company grew from a single store focused on whole-bean coffee and equipment into a broad consumer-facing brand. Howard Schultz, who joined the company later and served in senior leadership roles, is widely credited with transforming Starbucks into a mass-market specialty coffee retailer and expanding its footprint internationally.

Starbucks’ core activities center on the retail sale of hot and cold specialty beverages, whole-bean and packaged coffees, teas and ready-to-drink products, along with complementary food items and merchandise such as mugs and brewing equipment.