Starbucks (SBUX) PT Lowered to $95 at Evercore ISI

Evercore ISI analyst David Palmer lowered the price target on Starbucks (NASDAQ: SBUX) to $95.00 (from $105.00) while maintaining a Outperform rating.

The analyst comments "Maintain Outperform rating and trimming price target from $105 to $95. Our updated $95 price target is based on our DCF analysis and translates to ~35x our FY26e EPS, at the high-end of the 2-standard deviation trading range of 20–35x. However, given the expectation for a multi-year recovery period after investments, we believe Starbucks warrants a multiple at the high-end of historical trading ranges. We can envision a multi-year recovery period of roughly 15%+ EPS growth beyond FY26 when considering Starbucks’ brand strength and Brian Niccol’s turnaround history."

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