Goldman Sachs Upgrades Starbucks (SBUX) to Conviction Buy

Goldman Sachs upgraded Starbucks (NASDAQ: SBUX) from Neutral to Conviction Buy with a price target of $66 (up from $49).

The firm said Starbucks is poised to enter a renewed growth phase that may see more than a doubling of EPS by 2015. Specifically, Goldman sees the company posting EPS of $3.50-3.60 by 2015, 15-20% above consensus.

Key drivers for growth will be: Emerging market expansion, Single-serve, Continued US strength and Coffee deflation.

Goldman raised 2012-2014 EPS estimates to $1.86/$2.41/$3.04 from $1.85/$2.30/$2.69.

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 $56.91 yesterday.

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