UPDATE: Deutsche Bank Raises PT on Starbucks Following 3Q13 Preview
In a report published Monday, Deutsche Bank analyst Jason Weate reiterated a Buy rating on Starbucks Corporation (NASDAQ: SBUX), and raised the price target from $80.00 to $85.00.
In the report, Deutsche Bank noted, “We believe the July sluggishness discussed on 2Q conf. calls generally continued through the balance of 3Q. From MCD to DFRG, mgmt. tone has remained cautious on the restaurant consumer. In contrast, sector valuations are near cyclical peaks (~22x NTM P/E), leaving us concerned about relative and absolute perf. for the group into earnings season. Also, an extended govt. shutdown would likely cause some further retrenchment in restaurant spending. Maintain defensive bias. Reiterate Buys on MCD (franchise income on the cheap) and BWLD (favorable margin outlook protects EPS).”
Starbucks Corporation closed on Friday at $77.40.
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