Key Stats for Starbucks Stock
- YTD price change for Starbucks stock: 27%
- $SBUX Share Price as of May. 18: $107
- 52-Week High: $109
- $SBUX Stock Price Target: $107
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What Happened?
Starbucks (SBUX) stock rose last week after TD Cowen upgraded the company from “Hold” to “Buy” and raised its price target from $106 to $120.
The firm pointed to several concrete reasons for the change of heart.
- TD Cowen sees margin recovery on the way, driven by easing input costs, sales leverage, and targeted cost cuts outside of core operations.
- The firm also believes management can deliver on its ambitious targets — and expects both sales and earnings per share to exceed consensus estimates through fiscal 2028.
The upgrade comes on the heels of a strong Q2 earnings report.
- Starbucks beat expectations on both the top and bottom line.
- Revenue came in at $9.5 billion, ahead of the $9.12 billion estimate.
- Earnings per share hit $0.50, well above the $0.42 forecast.
- It was the first quarter in over two years in which Starbucks grew both revenue and earnings.
Global comparable store sales rose 6.2% in the quarter. U.S. comps accelerated to 7.1%, driven by a more than 4% jump in transactions — the strongest transaction growth in three years.
CEO Brian Niccol described it as “the turn in our turnaround.”
Following the results, Starbucks raised its full-year comp guidance to 5% or better and lifted EPS guidance to $2.25 to $2.45.
See analysts’ growth forecasts and price targets for Starbucks stock (It’s free) >>>
What the Market Is Telling Us About Starbucks Stock
Starbucks stock is trading near its 52-week high, and the momentum behind the business is real.
Customer satisfaction scores are rising, the loyalty program hit a record 35.6 million active members, and delivery revenue is growing over 30% year-to-date.
That said, Starbucks stock isn’t cheap. TD Cowen’s $120 target implies the market will eventually accept a 30x multiple on above-consensus 2028 earnings — a bold call that depends on continued execution.
The turnaround story is gaining traction. But with Starbucks stock already near its highs, the next few quarters of consistent results will matter a lot.
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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!
