Goldman Sachs Maintains Conviction Buy on Starbucks's K-cup Update

Goldman Sachs has published a research report on Starbucks SBUX after Nielsen data was reported. In the report, Goldman Sachs writes, "SBUX K-cup sales grew +9% on a sequential basis despite a -5% seasonal decline in overall industry sales. This drove a measurable step up in SBUX's K-cup dollar share to 16% exiting the period, from 13% in the previous 4-week period. On a unit basis SBUX has reached 12% share exiting the period vs. 9% in the period four-week period. If these trends continue, it may drive upside to our already above consensus SBUX out-year EPS estimates. Our current forecast, which is for $0.45-$0.50 K-cup accretion by 2015, is based on 16% unit share by that time." Goldman Sachs maintains its Buy rating and $66 price target on Starbucks, which is currently trading up $0.30 from yesterday's $59.50 closing price.