PORTLAND, Ore. (AP) -- Oppenheimer analyst Brian Bittner raised his rating on Starbucks stock on Wednesday because of its growth opportunities, a day before the coffee company is scheduled to report first-quarter results.
THE OPINION: Bittner upgraded his rating on Starbucks stock to "Outperform" from "Perform," lifted his earnings estimates through 2013 and set a $56 price target on its shares.
Starbucks sells products several ways: In its cafes, grocery stores and other retailers. The coffee chain also recently announced plans to open health and wellness stores.
Bittner said in a research note that this array of revenue sources is a boon for Starbucks, which he recommended to investors over the world's largest burger chain, McDonald's Corp.
Bittner said in a research note that Starbucks could exceed expectations in the 2013 fiscal year as sales jump at U.S. coffee shops and the company ramps up distribution for its single-serving "K-Cups." Bittner also expects reduced marketing costs for the K-Cups and lower costs for coffee beans.
He raised earnings predictions to $1.85 per share from $1.79 per share in fiscal 2012, and increased his profit estimate for 2013 to $2.30 per share from $2.16 per share.
Analysts polled by FactSet predict earnings of $1.83 per share in 2012 and $2.22 per share in 2013.
THE STOCK: Starbucks shares dipped 6 cents to $47.59 in afternoon trading. Shares have traded between $30.75 and $48.39 in the past 52 weeks.
There are no comments yet