Starbucks stock rises as Hedgeye adds it to long position
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 19 2024
0mins
Should l Buy SBUX?
Source: SeekingAlpha
Starbucks Corp's stock rose by 4.31%, reaching a 20-day high, amid positive market conditions with the Nasdaq-100 up 1.70% and the S&P 500 up 0.99%.
The increase in stock price is attributed to Hedgeye introducing Starbucks as a new long position, highlighting significant improvements under CEO Brian Niccol's leadership, including labor reintegration and reduced corporate complexity. Analyst Bennett Cheer expressed a positive outlook, indicating that Starbucks is transitioning towards comp acceleration and margin recovery, with early signs of this shift already visible.
This endorsement from Hedgeye could bolster investor confidence in Starbucks, especially as the company navigates challenges in revitalizing its global operations. The positive sentiment surrounding the stock may lead to increased interest from investors looking for growth opportunities.
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Analyst Views on SBUX
Wall Street analysts forecast SBUX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SBUX is 96.12 USD with a low forecast of 59.00 USD and a high forecast of 115.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
21 Analyst Rating
12 Buy
7 Hold
2 Sell
Moderate Buy
Current: 96.070
Low
59.00
Averages
96.12
High
115.00
Current: 96.070
Low
59.00
Averages
96.12
High
115.00
About SBUX
Starbucks Corporations is a roaster, marketer, and retailer of specialty coffee globally. Its North America segment includes the United States and Canada. Its International segment includes China, Japan, Asia Pacific, Europe, Middle East and Africa, Latin America, and the Caribbean. Its North America and International segments include both Company-operated and licensed stores. The Channel Development segment includes roasted whole bean and ground coffees, Starbucks-branded single-serve products, a variety of ready-to-drink beverages, such as Frappuccino and Starbucks Doubleshot, foodservice products, and other branded products sold outside the Company-operated and licensed stores. A large portion of its Channel Development business operates under a licensed model of the Global Coffee Alliance with Nestle, while its global ready-to-drink businesses operate under collaborative relationships with PepsiCo, Inc., Tingyi-Ashi Beverages Holding Co., Ltd., Arla Foods amba, Nestle, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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