Key Stats for Starbucks Stock
- YTD price change for Starbucks stock: 14%
- $SBUX Share Price as of April 10: $97
- 52-Week High: $105
- $SBUX Stock Price Target: $99
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What Happened?
Starbucks (SBUX) stock is moving higher today after Jefferies upgraded the company from Underperform to Hold.
- The firm also raised its price target from $86 to $92.
- The upgrade came after Starbucks completed its China franchising deal on April 2, giving analysts better visibility into the turnaround’s progress.
- Under the deal, Boyu Capital acquired a 60% stake in Starbucks China, while Starbucks retained 40%.
- The move significantly reduces the company’s international exposure.
- Jefferies noted that Starbucks now has less international risk than peers like McDonald’s, Yum Brands, and Domino’s Pizza.
The China deal changes the financial picture quite a bit.
Before the deal closed, the international segment made up around 33% of global system sales and 25% of operating profit. That exposure has now shrunk meaningfully.
The turnaround inside the U.S. business is also showing signs of life. In its most recent earnings call,
- Starbucks reported global comparable store sales growth of 4%, with U.S. transactions growing year-over-year for the first time in eight quarters.
- CEO Brian Niccol credited the company’s “Back to Starbucks” plan, which focuses on better service, stronger marketing, and menu innovation.
- Active Starbucks Rewards members hit a record 35.5 million during the quarter.
Looking ahead, Jefferies expects just over 50% of net new store growth between 2026 and 2030 to come from the Middle East, China, and India.
The firm models around 1.5% net global unit growth in fiscal 2026, rising to 1.8% in fiscal 2027.
Starbucks itself is targeting roughly 2,000 new global locations by fiscal 2028.
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What the Market Is Telling Us About Starbucks Stock
Starbucks stock is getting a modest lift from the upgrade, but Jefferies stopped short of calling it a buy.
The analyst noted that the stock still trades at a premium valuation, with a P/E ratio above 80. The new $92 price target is below where the stock trades today, suggesting the firm sees limited upside from current levels.
Stifel remains more optimistic, keeping its Buy rating and a $105 price target.
For long-term investors, Starbucks stock may be worth watching as the turnaround develops, but the valuation leaves little room for error.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
