UPDATE: Bank of America Merrill Lynch Reiterates Neutral Rating on Starbucks, but Raises PT

In a report released earlier today, Bank of America Merrill Lynch announced that while it is maintaining its Neutral rating on Starbucks Corporation

, it is raising its price target from $56 to $65. BofA Merrill Lynch went on to say about Starbucks “the company's earnings outlook strengthens as coffee costs are down and SBUX continues to layer in new business initiatives. We arrive at our new target by applying a 30x P/E multiple to our FY 2013 from a 28x-29x P/E range previously. We are leaving our FY 2013 EPS unchanged at this time but will re-examine after the company's upcoming 2Q (March) earnings report.” Starbucks Corporation closed yesterday at $60.63.