Starbucks Corporation (NASDAQ:SBUX) shares are moving higher on Wednesday. Analysts at RBC Capital and TD Securities weighed in on the stock. Here’s what you need to know.
The Details: RBC Capital analyst Logan Reich maintained an Outperform rating on Starbucks and raised the price target from $95 to $100.
Following the company's Leadership Experience day, the RBC Capital analyst has greater confidence in the company’s new strategy and believes increased labor hours will help drive traffic growth at Starbucks locations.
TD Securities analyst Andrew Charles reiterated a Hold rating on Starbucks with a $90 price target, pointing to accelerated timelines for the company’s Green Apron service model roll-out.
Charles believes the anticipated 12% staffing increase through the addition of assistant managers at “most” Starbucks locations will hurt earnings in 2026 and 2027.
Despite the mixed reactions from analysts, Starbucks shares are moving higher on Wednesday, last up more than 4%.
Is SBUX A Good Stock To Buy?
When deciding whether to buy a stock, there are some key fundamentals investors may want to consider. One of these factors is revenue growth. Buying a stock is essentially a bet that the business will continue to grow and generate profits in the future. Starbucks has reported average annual revenue growth of 11.72% over the past five years.
It's also important to pay attention to valuation when deciding whether to buy a stock. Starbucks has a forward P/E ratio of 30.49. This means investors are paying $30.49 for each dollar of expected earnings in the future. The average forward P/E ratio of Starbucks' peers is 62.1.
Other important metrics to look at include a company's profitability, balance sheet, performance relative to a benchmark index. For in-depth analysis tools and important financial data, check out Benzinga PRO.
SBUX Price Action: At the time of publication, Starbucks shares were up 4.14% at $95.16, according to data from Benzinga Pro.
Read Next:
Image via Shutterstock.
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
