U.S. Markets closed
  • S&P 500

    3,638.35
    +8.70 (+0.24%)
     
  • Dow 30

    29,910.37
    +37.90 (+0.13%)
     
  • Nasdaq

    12,205.85
    +111.44 (+0.92%)
     
  • Russell 2000

    1,855.27
    +10.25 (+0.56%)
     
  • Crude Oil

    45.53
    -0.18 (-0.39%)
     
  • Gold

    1,788.10
    -23.10 (-1.28%)
     
  • Silver

    22.64
    -0.81 (-3.44%)
     
  • EUR/USD

    1.1970
    +0.0057 (+0.4788%)
     
  • 10-Yr Bond

    0.8420
    -0.0360 (-4.10%)
     
  • Vix

    20.84
    -0.41 (-1.93%)
     
  • GBP/USD

    1.3314
    -0.0042 (-0.3169%)
     
  • USD/JPY

    104.0850
    -0.1650 (-0.1583%)
     
  • BTC-USD

    18,123.46
    +355.41 (+2.00%)
     
  • CMC Crypto 200

    333.27
    -4.23 (-1.25%)
     
  • FTSE 100

    6,367.58
    +4.65 (+0.07%)
     
  • Nikkei 225

    26,644.71
    +107.40 (+0.40%)
     

Oppenheimer Bumps Up Starbucks PT To $101 On Sales Recovery Bet

support@smarteranalyst.com (Ben Mahaney)
·1 min read

Oppenheimer raised the price target on Starbucks stock to $101 (16.7% upside potential) from $85, citing expectations for strong sales recovery and its attractive earnings power.

Oppenheimer analyst Brian Bittner, who reiterated a Buy rating on the stock, said “SBUX's near-term sales trends are significantly disrupted by the virus, similar to most restaurant companies. However, the recovery is well under way with sales improving from their lows as economies re-open and SBUX installs a plethora of self-help drivers. As sales improve margins should also regain health.”

Bittner further expects Starbucks' (SBUX) management to offer conservative guidance for fiscal 2021. The analyst said “We believe market expectations now properly discount near-term risks related to fiscal 4Q20 results (Oct. 29th), as we anticipate mgmt. to initiate fiscal 2021 guidance with intentional conservatism.”

On Oct. 1, Starbucks’ board approved a 10% hike in its quarterly cash dividend to $0.45 per share. The new quarterly dividend will be distributed on Nov. 27 to shareholders of record on Nov. 12. The dividend increase has boosted the company’s annual dividend rate to $1.80 per share. (See SBUX stock analysis on TipRanks).

Currently, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 11 Buys and 9 Holds. The average price target of $87.35 implies that shares are almost fully priced at current levels. Shares are down by 0.8% year-to-date.

Related News:
Starbucks Hikes Dividend By 10%; Cowen Upgrades Stock To Buy
Merrill Lynch Raises Nu Skin To Hold; Stock Jumps 9.6%
Zynga Closes Deal To Buy Game Developer Rollic

More recent articles from Smarter Analyst: