Starbucks (NASDAQ:SBUX) Price Target Cut to $120.00 by Analysts at Wells Fargo & Company

Starbucks (NASDAQ:SBUX) had its price target decreased by Wells Fargo & Company from $125.00 to $120.00 in a research report issued on Wednesday, Benzinga reports. The brokerage presently has an “overweight” rating on the coffee company’s stock. Wells Fargo & Company’s target price points to a potential upside of 21.54% from the stock’s current price.

Several other analysts have also recently weighed in on the company. Compass Point initiated coverage on Starbucks in a research report on Monday, August 3rd. They set a “buy” rating on the stock. Royal Bank Of Canada reissued a “sector perform” rating and issued a $115.00 target price (up from $110.00) on shares of Starbucks in a research report on Thursday, July 30th. Piper Sandler raised their target price on Starbucks from $110.00 to $120.00 and gave the company an “overweight” rating in a research note on Thursday, July 30th. Morgan Stanley lowered Starbucks from an “overweight” rating to an “underweight” rating in a research report on Monday, August 3rd. Finally, Rothschild & Co Redburn upped their price target on Starbucks from $81.00 to $82.00 and gave the stock a “sell” rating in a research note on Wednesday, September 30th. Twenty-four equities research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and four have assigned a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $110.43.

Starbucks Trading Down 0.6%

Shares of NASDAQ SBUX opened at $98.73 on Wednesday. Starbucks has a 12 month low of $77.99 and a 12 month high of $110.51. The firm has a market capitalization of $112.55 billion, a PE ratio of 56.89, a price-to-earnings-growth ratio of 1.41 and a beta of 0.98. The firm has a fifty day simple moving average of $99.90 and a two-hundred day simple moving average of $101.24.

Starbucks (NASDAQ:SBUX) last announced its earnings results on Wednesday, July 29th. The coffee company reported $0.85 earnings per share for the quarter, beating analysts’ consensus estimates of $0.66 by $0.19. Starbucks had a net margin of 5.17% and a negative return on equity of 34.10%. The firm had revenue of $9.32 billion for the quarter, compared to analyst estimates of $9.17 billion. During the same quarter in the previous year, the firm posted $0.50 EPS. The company’s revenue for the quarter was down 1.4% compared to the same quarter last year. Starbucks has set its FY 2026 guidance at 2.550-2.650 EPS. On average, sell-side analysts predict that Starbucks will post 2.60 earnings per share for the current year.

Insider Activity

In other news, CEO Brady Brewer sold 2,229 shares of the business’s stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $105.60, for a total value of $235,382.40. Following the sale, the chief executive officer directly owned 73,149 shares of the company’s stock, valued at $7,724,534.40. The trade was a 2.96% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 6,099 shares of company stock worth $627,135 in the last ninety days. 0.03% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Meeder Asset Management Inc. purchased a new stake in Starbucks during the 2nd quarter valued at about $25,000. Black Cypress Capital Management LLC purchased a new position in Starbucks in the second quarter worth about $27,000. Financial Freedom LLC raised its holdings in Starbucks by 296.2% in the first quarter. Financial Freedom LLC now owns 313 shares of the coffee company’s stock worth $28,000 after buying an additional 234 shares during the last quarter. Bangor Savings Bank raised its holdings in Starbucks by 207.5% in the second quarter. Bangor Savings Bank now owns 326 shares of the coffee company’s stock worth $33,000 after buying an additional 220 shares during the last quarter. Finally, Allied Private Wealth LLC bought a new position in shares of Starbucks in the second quarter worth approximately $35,000. Hedge funds and other institutional investors own 72.29% of the company’s stock.

Key Headlines Impacting Starbucks

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: UBS expects Starbucks to deliver a quarterly beat, forecasting North American comparable-store sales growth of 7.5% versus the 6.7% consensus and fiscal fourth-quarter EPS of $0.77–$0.82, above the $0.72 consensus. The estimates suggest the turnaround is gaining traction. Starbucks expected to build on US sales momentum as investors eye 2027 outlook
• Positive Sentiment: The company’s planned fiscal 2027 technology overhaul is intended to improve store efficiency, labor productivity and margins while supporting its $2 billion cost-savings target. Successful execution could strengthen profitability and cash flow. Starbucks Eyes FY27 Tech Overhaul: Can It Improve Margins?
• Positive Sentiment: Starbucks recently raised its quarterly dividend to $0.63 per share, reinforcing its shareholder-return program. Investors are also watching whether the turnaround can improve results enough to support the company’s fiscal 2027 outlook. Learn Why The Bull Case For Starbucks Could Change Following Fourth Quarter Results
• Neutral Sentiment: Reports that Starbucks explored acquiring Chipotle drew attention but were subsequently denied. With no transaction announced, the rumor has limited direct financial impact, though investors may view a potential deal as a distraction from the core turnaround.
• Negative Sentiment: Expectations are elevated: Starbucks trades near $100, with a P/E ratio above 57, so a strong quarter or optimistic 2027 guidance may already be partly reflected in the valuation. Any signs that recent sales momentum is fading could pressure the shares.

Starbucks Company Profile

Starbucks Corporation is a global specialty coffee company headquartered in Seattle, Washington. Founded in 1971, the company operates and licenses coffeehouses under the Starbucks brand, serving brewed coffee, espresso beverages, teas, cold drinks, food, and other ready-to-consume products.

In addition to its company-operated and licensed stores, Starbucks sells packaged coffee, tea, and single-serve products through grocery retailers, convenience stores, and other distribution channels.