Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
Starbucks Corporation (NASDAQ:SBUX) turned in a mixed quarter, bolstered by unexpectedly strong growth in China but marred by flat traffic in the U.S.
The reaction from the sell-side was also mixed, and a bit muted, with several analysts continuing to recommend the stock and raising the price target, but with Wells Fargo coming out with a downgrade.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
The coffee giant reported a tax-driven beat on EPS at 60 cents in the second quarter, along with a raise in guidance.
The Analysts
- Wells Fargo’s Bonnie Herzog downgraded the stock from Outperform to Market Perform. She also lowered the price target from $83 to $80.
- Stephens analyst Will Slabaugh maintained an Equal Weight rating on the stock, raising the target price from $65 to $72.
- Wedbush's Nick Setyan raised the target price from $70 to $75 while maintaining a Neutral rating on the stock.
- Morgan Stanley’s John Glass raised the target price from $70 to $75, keeping an Equal Weight rating.
- Bank of America analyst Gregory Francfort is keeping a Buy rating on the stock, boosting the price objective from $75 to $85.
Starbucks shares traded around $77.04 at publication time Friday.
The Theses
FREE REPORT: How To Learn Options Trading Fast
In this special report, you will learn the four best strategies for trading options, how to stay safe as a complete beginner, a 411% trade case study, PLUS how to access two new potential winning options trades starting today.Claim Your Free Report Here.
Herzog noted in her downgrade note that Wells Fargo remains very confident in the chain’s long-term growth trajectory. But price now makes the stock less attractive, she said, with the coffee chain having made a 58 percent run-up in share price since mid-2018, leaving “limited room for additional upside in the near-to-medium term.”
Slabaugh said the 3 percent comparable-store sales growth in China will allay some of the fears over flat-to-negative traffic across the chain. Slabaugh also said despite traffic concerns, he remains impressed with Starbucks’ “beverage innovation” that’s often beating local niche competitors.
Setyan was also impressed by the unexpected comp store growth in China, but warned of near-term headwinds there, including increased competition and the slowing Chinese economy.
Glass praised Starbucks for its strong margin performance, stable U.S. comps and improving China sales, adding up to a solid quarter.
“But still-flat U.S. traffic and aggregate comps of 3 percent probably don't change how investors think about the rest-of-year sales trajectory,” Glass said.
Related Links
Starbucks Shares Perk Up After Q1 Earnings Beat
Analysts Bullish On Starbucks Despite Fast-Moving Chinese Competition
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.