Why Starbucks' Quarter Was Among The 'Strongest And Most Remarkable'

In a report published Friday, Barclays analyst Jeffrey A. Bernstein maintained an Equal Weight rating on Starbucks Corporation (NASDAQ: SBUX), while raising the price target from $50 to $54. The company reported "among the strongest & most remarkable quarters" in its history for 3Q15, driven by comp upside in the Americas.Analyst Bernstein believes that "SBUX is a leading global growth story, with an industry-leading US retail coffee platform, significant int'l growth opportunities led by China, and plans for CPG to one day rival the retail platform." He also expects the stock to outperform following the strong 3Q results.Although Starbucks reiterated its 4Q15 guidance, the full year EPS guidance was raised, following the 3Q results. The analyst believes, however, that there are several factors that are limiting upside to the 4Q expectations, such as strong Fx headwinds and increased digital and US partner investments.The company intends to increase its US Mobile Order and Pay service, from 150 stores during the holiday season of 2014 to all its 9000 stores by the holiday season of 2015. This, along with strategic relationships, is likely to help sustain comp growth in F2016. In fact, analyst Bernstein added that he expected "a return to the ‘beat & raise' scenario of SBUX in years past," for F2016 and beyond.