Andrew Strelzik, an analyst from BMO Capital, reiterated the Buy rating on Starbucks. The associated price target is $115.00.
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Andrew Strelzik has given his Buy rating due to a combination of factors that highlight Starbucks’ ongoing turnaround efforts and future growth potential. Despite a recent earnings miss, Starbucks has shown consistent improvement in U.S. comparable transactions for three consecutive quarters, indicating positive momentum. The company’s strategic labor investments and aggressive sales initiatives are expected to further drive growth as they are implemented in the coming fiscal years.
Strelzik is optimistic about Starbucks’ ability to enhance its operational efficiency and expand its product offerings, such as the introduction of new beverages and bakery items. Additionally, the company’s focus on improving customer engagement and loyalty, along with a promising innovation agenda, supports the potential for long-term earnings growth. While short-term margins may face pressure due to ongoing investments, the outlook for returning to pre-COVID operating margins remains positive, reinforcing the Buy rating.
In another report released today, BTIG also maintained a Buy rating on the stock with a $105.00 price target.