Oppenheimer Upgrades Starbucks to Outperform

Oppenheimer raises its rating on Starbucks (NASDAQ: SBUX) on multiple expansion opportunities. Price target for the stock is at $56 a share.

Oppenheimer says, "We prefer SBUX with a 1.3x PEG that is a sizable discount to MCD's and a multi-channel earnings model that possesses greater operating leverage and more compelling avenues for outsized growth. In our view, SBUX has numerous layers that could drive F2013 EPS power above current expectations and support multiple expansion."

SBUX closed at $47.65 a share on Tuesday.