Starbucks Stocks Rise 3.74% as Stifel Resumes With Buy, $115 Target

What happened

Stifel resumed coverage of Starbucks with a Buy rating and a $115 price target. It said sales gains and cost savings are helping fund investments in labor and the coffeehouse experience, and projected 4% global same-store sales growth for fiscal 2027.

Confirmed

Global impact / market context

The analyst’s outlook rests on sales growth and cost savings covering spending on workers and stores, which could support earnings without relying as heavily on outside funding. But revenue fell 4% in the latest quarter, largely tied to the China joint venture transition, while international comparable sales growth was modest.

Analyst inference

The article reports stronger comparable sales, a wider operating margin, and higher adjusted earnings, alongside lower revenue and uneven regional growth. It also says the shares were about 13% above GuruFocus’s estimated value, while Stifel’s target implied about 5% upside, limiting the indicated gap to that target.

Confirmed

What to watch

1. Compare future revenue with comparable-sales growth: continued divergence could show that store sales gains are not translating into broader top-line growth. Analyst inference
2. Check whether Starbucks delivers fiscal 2027 adjusted earnings per share guidance of $3.15 to $3.25 while continuing investment in labor and coffeehouse experience. Confirmed
3. Watch international comparable sales, which grew 0.9% in the latest quarter; stronger growth could broaden the recovery, while continued weakness may constrain global results. Analyst inference

Evidence

• gurufocus.com