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Starbucks Posts Q3 Beat: 2 Wall Street Takes

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Starbucks Posts Q3 Beat: 2 Wall Street Takes

Starbucks Corporation (NASDAQ: SBUX) shares are soaring one day after reporting a third-quarter earnings beat.

Stephens: Starbucks Maintaining Full Valuation 

Starbucks' third quarter came in ahead of what he considers a bullish view after posting 7% U.S. comps growth and Chinese same-store sales growth of 6%, Stephens analyst Will Slabaugh said in a Friday note. 

“Many initiatives appeared to come together in the quarter, including the acceleration of already-strong adoption of recent beverage innovation, clear improvements in monetization of MSR members, driving higher spend and frequency and what we now believe are tangible benefits of re-focusing employees on customer engagement,” the analyst said.

While the compares become more difficult, the third quarter puts many fears to rest in the near-term and likely helps Starbucks maintains what Slabaugh views as full valuation in a market that is rewarding scale and consistency..

Stephens maintained an Equal-Weight rating on Starbucks and raised the price target from $72 to $90.

Growth Outpaces KeyBanc's Expectations 

With an increasingly disruptive competitor emerging in China, Starbucks same-store sales growth was ahead of investor expectations, KeyBanc Capital Markets analyst Eric Gonzalez said in a Thursday note. 

The company’s same-store sales growth of 7% in the Americas was well ahead of KeyBanc's 4% target and was driven by solid beverage execution and rewards membership growth, the analyst said. 

KeyBanc maintained an Overweight rating and raised the price target from $84 to $105.

Starbucks shares were trading higher by 7.47% at $97.78 at the time of publication Friday.

Related Links:

'Trading Nation' Traders Talk Chipolte, McDonald's And Starbucks

'Satisfying Growth': Oppenheimer Raises Starbucks Price Target Ahead Of Q3 Print

Latest Ratings for SBUX

DateFirmActionFromTo
Apr 2020CitigroupMaintainsBuy
Apr 2020BarclaysMaintainsOverweight
Apr 2020UBSMaintainsNeutral

View More Analyst Ratings for SBUX
View the Latest Analyst Ratings

 

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