Key Stats for Starbucks Stock
- Past-Week Performance: -3%
- 52-Week Range: $76 to $117
- Valuation Model Target Price: $103
- Implied Upside: 8% over 2.7 years
Value your favorite stocks like Starbucks with 5 years of analysts’ forecasts using TIKR’s new Valuation Model (It’s free) >>>
What Happened?
Starbucks Corporation stock slipped about 3% this week, trading lower across several sessions and finishing near $93, after failing to hold levels around $95 earlier in the week.
Shares showed early strength but gave back gains as selling pressure picked up later in the period, leaving the stock near the lower end of its recent range.
The stock moved higher earlier in the week following investor reaction to the company’s latest earnings update, which showed higher revenue and positive comparable store sales, signaling that customer traffic trends are stabilizing in Starbucks’ core markets.
That data supported short-term buying as it pointed to early traction from operational improvements, particularly in the U.S.
However, the advance faded as management commentary highlighted ongoing cost pressure, promotional intensity, and softer demand trends in China, which tempered confidence in the pace of near-term margin recovery.
As those concerns resurfaced, investors locked in gains from the initial post-earnings bounce, pulling shares back from weekly highs.
Analyst updates reinforced the mixed tone. Guggenheim reiterated a Buy rating with a $90 price target, Piper Sandler lowered its target to $100 from $105 while maintaining an Overweight rating, and Barclays reaffirmed an Overweight rating while raising its target to $110 from $95.
At the same time, DBS Bank downgraded Starbucks to Strong Sell, citing competitive and margin concerns. The combination of upgrades, trims, and a downgrade widened expectations and kept the stock range-bound rather than directional.
See analysts’ growth forecasts and price targets for Starbucks (It’s free) >>>
Is Starbucks Undervalued?
Under valuation model assumptions, the stock is modeled using:
- Revenue Growth (CAGR): 5.0%
- Operating Margins: 11.9%
- Exit P/E Multiple: 29.0x
Based on these inputs, the model estimates a target price of $103, implying about 8% total upside from recent levels over the next 2.7 years.
Over the next year, results are likely shaped by how effectively Starbucks converts traffic stabilization into sustained same-store sales growth in the U.S., where higher transactions need to translate into improved average ticket and operating leverage.
China remains a key swing factor, with store-level productivity, pricing discipline, and competitive positioning determining whether the region shifts from a margin headwind to a contributor to earnings growth.
Margin performance ties closely to labor efficiency, supply chain normalization, and the pace of reinvestment as Starbucks balances near-term cost pressure with longer-term brand and loyalty investments.
At current levels, Starbucks appears undervalued, with future performance driven by execution and gradual margin recovery rather than multiple expansion.
Estimate a company’s fair value instantly (Free with TIKR) >>>
Value Any Stock in Under 60 Seconds (It’s Free)
With TIKR’s new Valuation Model tool, you can estimate a stock’s potential share price in under a minute.
All it takes is three simple inputs:
- Revenue Growth
- Operating Margins
- Exit P/E Multiple
From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.
If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.
See a stock’s true value in under 60 seconds (Free with TIKR) >>>
