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Wake Up And Smell The Buy: Tigress Initiates Coverage On Starbucks

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Wake Up And Smell The Buy: Tigress Initiates Coverage On Starbucks
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2017 wasn't the best for Starbucks Corporation (NASDAQ: SBUX) investors, as shares of the coffee chain are trading higher by just 3 percent for the year, but one Wall Street analyst is hopeful for 2018 and beyond.

The Analyst

Tigress Financial Partners' Ivan Feinseth initiated coverage of Starbucks' stock with a Buy.

The Thesis

Starbucks' management team is now refocusing its strategy to deliver growth through the enaction of new and improving initiatives, Feinseth said in the initiation note. (See the analyst's track record here.) 

For example, the company continues to expand its product portfolio with a focus on health and wellness beverages, tea and food. Some of the new food and drink options are intended specifically to drive foot traffic during the later hours of the day.

Starbucks is also focusing on digital initiatives to improve the overall customer experience, increase mobile ordering and expand its loyalty program, Feinseth said. And the company is expanding mobile initiatives, which may be vital in driving future growth in China and the Asia Pacific region.

Investors should have confidence in Starbucks' management team, which boasts a "successful operating history" and can leverage its brand equity with new digital growth initiatives, the analyst said. This should drive "significant" increases in return on capital, improved economic profit and generate greater shareholder value, Feinseth said.

Starbucks shares have "significant upside" from today's levels, according to Tigress Financial. 

Price Action

Starbucks closed Wednesday at $57.27. 

Related Links:

Are Restaurants Safe From The Amazon Effect?

The Sell-Side Sentiment On Starbucks

Latest Ratings for SBUX

DateFirmActionFromTo
Apr 2018Cowen & Co.DowngradesOutperformMarket Perform
Mar 2018WedbushDowngradesOutperformNeutral
Feb 2018MizuhoDowngradesBuyNeutral

View More Analyst Ratings for SBUX
View the Latest Analyst Ratings

Posted-In: coffee Ivan Feinseth Tigress Financial PartnersAnalyst Color Initiation Restaurants Analyst Ratings General Best of Benzinga

 

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