RBC Capital Maintains Bullish View on Starbucks (SBUX), Says SSS Could Reaccelerate in F2H17
- Top 10 News for 12/2: Crude Rips on OPEC Cut; Starbucks' Schultz Steps Down; Nonfarm Payrolls Flat in Nov.
- Unemployment Rate Drops to 4.6%
- Bond yields slip on U.S. jobs data, euro steady before Italy vote
- Alibaba (BABA) Founder Jack Ma Discuss Plans to Retire; 'I Don't Want to Die at the Office'
- Starbucks Coffee (SBUX) CEO Howard Schultz to Step Down, Appointed Executive Chairman; Kevin Johnson New CEO
Get instant alerts when news breaks on your stocks. Claim your 2-week free trial to StreetInsider Premium here.
RBC Capital analyst David Palmer reiterated his Outperform rating and $64 price target on Starbucks (NASDAQ: SBUX) following slightly better than expected F4Q EPS and SSS trends.
"While difficult comparisons and partner investments could limit near-term SSS and EPS upside, we believe SSS growth could reaccelerate in F2H17 as comparisons ease and the company focuses on acquiring new Rewards users," the analyst said.
Palmer added, "We are maintaining our $64 price target and FY17 EPS estimate of $2.13 (+13% YOY). Our FY17 EPS estimate is within the company's $2.12 to $2.14 guidance range, which falls at the low end of company's 15%-20% LT target growth range (on a 52-week basis). Our 4.5% Americas segment SSS growth (2017e) is unchanged and is consistent with company expectation that trends will be higher in the second half (partly as a result of reaccelerating Rewards membership growth). In addition, our model accounts for a $250 million (vs. $160 million last year) step-up in partner/ technology investments and a slight tailwind from commodities that is likely to be offset by FX. Our $64 price target equates to 26x our FY18 EPS estimate of $2.46 (+16% YOY)."
Shares of Starbucks closed at $51.77 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Schultz Will Be A Tough Act For Starbucks Coffee (SBUX) To Follow
- Options with increasing volume
- Options expected to have Increasing volume
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View
Related EntitiesRBC Capital
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!