Piper Jaffray Reiterates “Overweight” Rating on Starbucks…Again (SBUX)

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Coffee retailer Starbucks Corporation ( SBUX ) 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 Tuesday.

The Bottom Line
Shares of Starbucks ( SBUX ) 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 ( SBUX ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Stocks

Referenced Stocks: SBUX

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