Coffee retailer Starbucks Corporation (
) on Tuesday saw its rating and price target reaffirmed by analysts
at Piper Jaffray for the second time in a week.
The firm once again backed its "Overweight" rating and a $50
price target on SBUX, suggesting a 21% upside to the stock's Monday
closing price of $41.16.
A Piper Jaffray analyst commented, "Double-digit growth
opportunities within the fast-growing single serve coffee market
leave us encouraged about the future of the coffee beverage space,
in particular as it relates to shares of SBUX. We believe the
recent K-Cup collaboration between Green Mountain and Starbucks is
compelling and can be a meaningful contributor to SSS and EPS
growth over the next 24 months. Despite elevated coffee prices, we
believe the growth opportunities that lay ahead are quite
encouraging especially as product evolution/innovation progresses
and consumers continue to adopt the single serve form factor. We
reiterate our OW rating and $50 price target, which implies a
~$7/share valuation for the company's CPG segment."
Starbucks shares posted modest gains in premarket trading
The Bottom Line
Shares of Starbucks (
) have a 1.26% dividend yield, based on last night's closing stock
price of $41.16. The stock has technical support in the $36-$38
price area. The shares are trading at all-time highs.
Starbucks Corporation (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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