Goldman Positive Coverage on Starbucks (SBUX)

December 6, 2012 3:59 PM EST
Get Alerts SBUX Hot Sheet
Price: $58.45 +0.78%

Rating Summary:
    28 Buy, 8 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 5 | Down: 5 | New: 0
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Starbucks (NASDAQ: SBUX) recently held its biannual investor day in New York. Commenting on the event, analyst Michael Kelter of Goldman Sachs said, "We come away with continued confidence in our Conviction Buy call on the shares. We see SBUX as well-positioned looking forward with several meaningful drivers of growth."

"All in, we see the potential for SBUX to double EPS over the next 3-4 years and expect that the shares would follow," continued Kelter.

He sees plenty of room for renewed U.S unit growth, and thinks China is starting to hit critical mass. Single serve should help dive EPS growth going forward, and coffee deflation should be a tailwind to earnings.

Goldmans see fiscal 2013-2015 EPS at $2.18/$2.73/$3.35.

Goldman Sachs has a Conviction Buy rating on Starbucks (NASDAQ: SBUX) with a price target of $62.00.

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 $50.79 yesterday.

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