Starbucks (SBUX) PT Raised to $95 at UBS

UBS analyst Dennis Geiger raised the price target on Starbucks (NASDAQ: SBUX) to $95.00 (from $90.00) while maintaining a Neutral rating.

The analyst commented, "We think Starbucks continues to face near-term traffic and sales choppiness given brand challenges and consumer spending pressure in the US. We expect implementation of the 'Back to Starbucks' strategy should support improved US transactions and sales growth over time, w/ a focus on the trajectory of progress against plans, as well as the impact to earnings power over the coming yrs. With increasing questions around brand health & positioning, we examined insights from the UBS Evidence Lab 2025 Global Coffee Survey & QSR Survey to assess changing brand perceptions in recent years, as well as early impacts from strategic initiatives and the biggest opportunities to improve sales. Results indicate consumers maintain strong brand affinity and still high scores on many key brands attributes. However, declining value perceptions and pressure from coffee competition have likely impacted traffic and highlight the importance of the 'Back to Starbucks' strategy to improve demand."

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