Starbucks (NASDAQ:SBUX) Earns Buy Rating from TD Cowen

Starbucks (NASDAQ:SBUX)‘s stock had its “buy” rating restated by analysts at TD Cowen in a report released on Thursday,Benzinga reports. They presently have a $120.00 price target on the coffee company’s stock. TD Cowen’s price target suggests a potential upside of 14.01% from the stock’s current price.

A number of other equities analysts have also recently commented on the company. Tigress Financial began coverage on Starbucks in a report on Wednesday, April 15th. They set a “buy” rating and a $122.00 price target for the company. Morgan Stanley upped their price objective on Starbucks from $111.00 to $115.00 and gave the company an “overweight” rating in a research note on Thursday. Wells Fargo & Company raised their price objective on Starbucks from $120.00 to $125.00 and gave the company an “overweight” rating in a research report on Thursday. Scotiabank cut Starbucks from a “market perform” rating to an “underperform” rating in a research report on Thursday, May 14th. Finally, Citigroup lifted their target price on Starbucks from $108.00 to $112.00 and gave the stock a “neutral” rating in a research note on Thursday. Nineteen analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, Starbucks has an average rating of “Moderate Buy” and a consensus price target of $112.04.

Starbucks Trading Down 0.6%

NASDAQ SBUX opened at $105.25 on Thursday. The firm has a market capitalization of $119.98 billion, a P/E ratio of 60.49, a price-to-earnings-growth ratio of 1.92 and a beta of 0.98. The firm’s fifty day moving average price is $102.23 and its two-hundred day moving average price is $99.08. Starbucks has a 1 year low of $77.99 and a 1 year high of $109.23.

Starbucks (NASDAQ:SBUX) last announced its quarterly earnings data on Wednesday, July 29th. The coffee company reported $0.85 EPS for the quarter, beating analysts’ consensus estimates of $0.66 by $0.19. The company had revenue of $9.32 billion during the quarter, compared to the consensus estimate of $9.17 billion. Starbucks had a net margin of 5.17% and a negative return on equity of 34.10%. The company’s quarterly revenue was down 1.4% on a year-over-year basis. During the same quarter last year, the firm posted $0.50 EPS. Starbucks has set its FY 2026 guidance at 2.550-2.650 EPS. On average, research analysts anticipate that Starbucks will post 2.63 EPS for the current fiscal year.

Insider Transactions at Starbucks

In other news, CEO Brady Brewer sold 2,229 shares of the business’s stock in a transaction that occurred on Monday, July 6th. The stock was sold at an average price of $104.00, for a total transaction of $231,816.00. Following the completion of the sale, the chief executive officer owned 77,364 shares in the company, valued at $8,045,856. The trade was a 2.80% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 6,687 shares of company stock worth $679,033 in the last three months. Company insiders own 0.03% of the company’s stock.

Institutional Trading of Starbucks

Several hedge funds have recently added to or reduced their stakes in the company. Brighton Jones LLC grew its stake in shares of Starbucks by 86.5% in the fourth quarter. Brighton Jones LLC now owns 176,722 shares of the coffee company’s stock valued at $16,126,000 after acquiring an additional 81,952 shares in the last quarter. Schnieders Capital Management LLC. raised its stake in Starbucks by 47.0% in the 2nd quarter. Schnieders Capital Management LLC. now owns 3,642 shares of the coffee company’s stock worth $334,000 after purchasing an additional 1,164 shares in the last quarter. Flow Traders U.S. LLC acquired a new stake in Starbucks in the 2nd quarter worth about $288,000. Gamco Investors INC. ET AL boosted its holdings in Starbucks by 92.8% in the 2nd quarter. Gamco Investors INC. ET AL now owns 5,225 shares of the coffee company’s stock valued at $479,000 after purchasing an additional 2,515 shares during the period. Finally, NewEdge Advisors LLC boosted its holdings in Starbucks by 7.6% in the 2nd quarter. NewEdge Advisors LLC now owns 112,710 shares of the coffee company’s stock valued at $10,328,000 after purchasing an additional 7,978 shares during the period. 72.29% of the stock is owned by institutional investors and hedge funds.

Starbucks News Summary

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Strong fiscal Q3 results: Adjusted earnings of $0.85 per share exceeded the $0.66 consensus, while revenue reached $9.32 billion versus expectations of approximately $9.17 billion. Global comparable-store sales increased 7.9%, powered by 4.2% transaction growth, suggesting customer traffic—not just pricing—is improving. Starbucks Q3 profit beats on US turnaround, lifts full-year guidance
• Positive Sentiment: Guidance was raised: Starbucks lifted fiscal 2026 adjusted EPS guidance to $2.55–$2.65 from $2.25–$2.45 and now expects roughly 6% full-year global comparable-sales growth. Management said faster service, store improvements, new products and better customer experiences are helping CEO Brian Niccol’s “Back to Starbucks” turnaround. Starbucks Just Raised Starbucks’ Full-Year Profit Guidance
• Positive Sentiment: Analyst support remains favorable: TD Cowen reaffirmed a Buy rating with a $120 target, while BTIG raised or reaffirmed its target at $115. Wells Fargo raised its target to $125 and Morgan Stanley to $115, reinforcing expectations for further recovery. We’re raising our price target on Starbucks after a home-run quarter
• Neutral Sentiment: Starbucks is testing carbonated versions of its Refreshers in select markets, expanding its non-coffee beverage strategy aimed particularly at younger customers. The sales impact remains unproven. Starbucks is betting bubbles will give sales some sparkle
• Negative Sentiment: Valuation and profit-taking are limiting upside: After a substantial year-to-date advance and trading near its 52-week high, SBUX carries a price-to-earnings ratio above 60. Wolfe Research maintained a Hold rating, and BNP Paribas Exane kept an Underperform rating with a $92 target, warning that much of the recovery may already be priced in. Recent insider activity has also consisted of sales rather than purchases.

Starbucks Company Profile

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.