DA Davidson starts Starbucks at Neutral amid lack of ‘greater margin visibility’

As previously reported, DA Davidson initiated coverage of Starbucks (SBUX) with a Neutral rating and $97 price target The company’s turnaround efforts appear to have successfully repositioned it for sustainable growth, though the pace of SSS improvement necessary to attain the better end of FY28 margin and EPS guidance remains a key question given a lack of visibility on when historical flow-thru can be recaptured, the analyst tells investors in a research note. Pending greater margin visibility, the firm prefers to remain at neutral, DA Davidson added.