Oppenheimer Reiterates an 'Outperform' on Starbucks (SBUX); Still Top Large Cap Pick

September 5, 2012 9:27 AM EDT Send to a Friend
Get Alerts SBUX Hot Sheet
Price: $79.44 -0.74%

Rating Summary:
    25 Buy, 4 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 14 | Down: 28 | New: 51
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Oppenheimer reiterates an 'Outperform' on Starbucks (NASDAQ: SBUX) price target of $62.00.

Analyst, Brian Bittner, said, "SBUX has rebounded 15% since 8/2's bottom, but remains well-positioned for new capital and we reiterate our "top large-cap pick" thesis. Near term, expectations have reset to healthy and beatable levels with potential upside if management sharpens focus on costs as comps remain in healthy ~5%+. Longer term, SBUX is entering 24 months of coffee cost benefits with F14 likely to be a major "flow-through year," all while a stuffed sales pipeline methodically unloads (Verismo, enhanced food, throughput, CPG, China, etc). Shares appear attractively valued at 1.0x PEG, given our expectation for 23% average EPS growth over F13 and F14."

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 $49.51 yesterday.


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