Starbucks (SBUX) PT Lifted to $107 at Piper Jaffray

Piper Jaffray analyst Nicole Miller Regan reiterated an Overweight rating and boosted her price target on Starbucks (NASDAQ: SBUX) to $107.00 (from $102.00) following travels with management which increases their confidence in the 5-year model.

Regan commented, "Today's note follows our recent travels with management (CFO Mr. Scott Maw and VP of IR Ms. JoAnn DeGrande) where we walked away with heightened conviction in the achievability of our estimates during the next five years. We believe we have a more thorough understanding of the segment growth drivers and remain confident in our bull thesis looking for a doubling of earnings and $100+ billion market capitalization in less than five years. We reiterate our Overweight rating and are increasing our price target on SBUX shares to $107 based on a 14% (vs. 16% prior) discount rate applied to our FY19 earnings power; which equates to 16x our FY16 EV/EBITDA (vs. 15x prior) estimate, with an increased multiple given the track record of operational execution and compelling pipeline of human and financial capital investments."

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 $93.45 yesterday.

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