Bernstein Reiterates Outperform Rating on Starbucks (SBUX)

Bernstein SocGen Group analyst Danilo Gargiulo reiterated an Outperform rating and $100.00 price target on Starbucks (NASDAQ: SBUX).

The analyst commented: "At the recent Investor Day, Starbucks shared their ambition to reach $3.35 to $4 EPS by 2028 through a combination of 5% revenue growth and operating margin expansion from 8% in FY25 to 13.5-15%. An EPS growth decomposition analysis suggests that by reaching the $2B cost saving and 3% SSSG goals, Starbucks could exceed the $4 EPS target by 2028. Reaching $2B in net savings would enable Starbucks to add ~$1.30 to the 2025 EPS of $2.13, while we estimate that a 3% SSSG with a 50-60% margin flowthrough may lead to an incremental ~$0.90 EPS.

With the recent rally (+15% YTD) the risk-reward is more balanced, but momentum could support acceleration of the stock. With a 28x in FY28 and $4+ EPS the stock has still some upside, but moderate. That said, the continued traffic momentum and upward estimate revisions as the company over-delivers on their commitments, could support an acceleration of the stock."

For an analyst ratings summary and ratings history on Starbucks click here. For more ratings news on Starbucks click here.

Shares of Starbucks closed at $96.68 yesterday.

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