How Starbucks Could Give Its Stock a Jolt

Barrons2021-04-27

Starbucks didn’t deliver the caffeinated sales that Wall Street wanted in the first quarter. Now, the coffeehouse chain gets another chance to deliver a jolt when it reports second-quarter results after the bell on Tuesday.

Investors are predicting that the economic reopening will fuel a rally, and analysts are standing with them. Shares of Starbucks (ticker: SBUX) were down 1.4%, to $115.92 on Monday.

An end to the pandemic will help companies across the board, but analysts argue that Starbucks is an especially well-positioned recovery play since more people will be getting breakfast on the go as they return to offices and schools, and its cafes will be open once again for dine-in customers. The outlook in China is also brightening.

Analysts are looking for Starbucks to earn 53 cents a share, on revenue of $6.78 billion. That’s up from EPS of 32 cents and revenue of $6 billion in the year-ago period.

And the upbeat mood carries over to the stock. Of the 33 Starbucks analysts tracked by FactSet, 58% rate the stock at Buy and 42% at Hold. There are no bearish ratings on the Street. The average analyst price target is $118.57.

Starbucks will hold a conference call at 5 p.m. EDT on Tuesday.

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Comments

  • Jessth
    2021-04-27
    Jessth
    I m eyeing starburk[齜牙] 
  • Workaholyk
    2021-04-27
    Workaholyk
     I want this stock 
  • Chimpsey
    2021-04-27
    Chimpsey
    Is this great news? Please like and comment. 
  • Waqwaq
    2021-04-27
    Waqwaq
    Pretty confident about Starbucks actually, guess this is no biggie . Just another wave totide over 
  • sallymil
    2021-04-27
    sallymil
    Great
  • Huatge68
    2021-04-27
    Huatge68
    Great 
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