4 Starbucks Analysts On Q3 Earnings: 'Another Solid Quarter'

Zinger Key Points
  • A Wedbush analyst reiterated a Neutral rating, while raising the price target from $81 to $86.
  • Another analyst maintained an Outperform rating and a price target of $105.

Starbucks Corporation SBUX reported its fiscal third quarter adjusted earnings at 84 cents per share, beating the consensus estimate of 75 cents per share.

KeyBanc Capital Markets On Starbucks

Analyst Eric Gonzalez maintained a Sector Weight rating for the company.

Starbucks delivered an earnings beat on the back of better-than-expected margins in North America, Gonzalez said in a note. “International results were weighed down by COVID restrictions in China, but results outside the region were relatively strong,” he added.

“Inflation is expected to remain near F3Q22 levels in F4Q, wage increases took effect on August 1, and conditions in China remain volatile,” the analyst wrote.

Wedbush On Starbucks

Analyst Nick Setyan reiterated a Neutral rating, while raising the price target from $81 to $86.

The Seattle-based coffee chain delivered “another solid quarter,” driven by momentum in the U.S., Setyan said in a note. “Management also noted that International ex. China outperformed, led by Japan, which contributed to the bottom-line beat,” he added.

“Near- and medium-term visibility remains limited ahead of 9/13 Investor Day,” the analyst further mentioned.

Check out other analyst stock ratings.

BMO Capital Markets On Starbucks

Analyst Andrew Strelzik maintained an Outperform rating and a price target of $105.

“SBUX’s F3Q22 EPS of $0.84 exceeded consensus by $0.07 as stronger North America margins and $0.05 of favorable non-recurring costs more than offset investments and softer China trends,” Strelzik wrote in a note.

He added that the upcoming Investor Day “could be a catalyst for a shift in market's focus to SBUX's future earnings potential.”

Also Read: Top Questions Tesla Shareholder Want Musk, Company Leaders To Address At Thursday's Annual Shareholder Meeting 

RBC Capital Markets On Starbucks

Analyst Christopher Carril maintained a Sector Perform rating, while keeping the price target unchanged at $87.

“SBUX delivered a 3FQ EPS beat, though results were mixed, with ~in line Americas comp and better-than-expected margins helping to offset ongoing COVID impact on China top line,” Carril said in a note.

“Looking ahead, a slower-than-anticipated China recovery and increased US investment levels will pressure 4FQ margins/EPS,” he added.

SBUX Price Action: Shares of Starbucks had risen by 2.75% to $86.01 at the time of publication Wednesday.

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Posted In: Analyst ColorEarningsNewsPrice TargetReiterationAnalyst RatingsAndrew StrelzikBMO Capital MarketsChristopher CarrilEric GonzalezKeyBanc Capital MarketsNick SetyanRBC Capital MarketsWedbush