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Starbucks price target raised to $100 from $95 at UBS

UBS analyst Dennis Geiger raised the firm’s price target on Starbucks (SBUX) to $100 from $95 and keeps a Neutral rating on the shares. Starbucks’ Q2 results included U.S. same-store sales and traffic trends that were still challenged, with margins and earnings lower than expectations, reflecting sales deleverage and incremental investments, the analyst tells investors in a research note. While the turnaround plan should support a sales recovery over time, UBS looks for better visibility into a positive inflection in underlying sales growth and greater earnings power clarity before getting more constructive on shares.

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