Jim Lebenthal Weighs In On Starbucks And Roku
On CNBC's "Fast Money Halftime Report," Jim Lebenthal said that Starbucks Corporation (NASDAQ: SBUX) is an actionable buy idea because he sees asymmetric risk-return to the upside for the stock.
He explained that the international business is about 23% of the total business and that is more an opportunity than a risk. He sees the main question in what goes on in the United States. The stock trades at 30 times next year's earnings and the multiple doesn't reflect fully re-opened economy, said Lebenthal. That makes him comfortable that the downside risk is limited and that Starbucks can move towards $101 when the economy opens.
Lebenthal believes that a 12% return in Roku Inc (NASDAQ: ROKU) is quite possible going into the year end. He sees it as a trading vehicle and it can move to $227, but if it starts to move lower before it reaches the price target, he is going to close his long position.
See more from Benzinga
Options Trades For This Crazy Market: Get Benzinga Options to Follow High-Conviction Trade Ideas
Pete Najarian Sees Unusual Options Activity In Virgin Galactic And Twilio
© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
