Deutsche Bank Maintains a 'Buy' on Starbucks (SBUX); Having K-Cups, And Lattes Too

Deutsche Bank maintains a 'Buy' on Starbucks (NASDAQ: SBUX) price target raised from $53 to $59.

Deutsche analyst said, "SBUX announced that it is introducing a new, single-cup coffee machine called Verismo. This was somewhat surprising since almost 1 year ago to the day SBUX announced a multi-year partnership with Green Mountain Coffee Roasters (Nasdaq: GMCR). This announcement speaks to the leverage that the SBUX brand has in the broader coffee market, and it is encouraging to see the company putting this leverage to work without putting significant company capital at risk."

"Limited initial distribution (starting this fall) and premium nature of the product suggests modest impact in FY13 -- likely less than the 5c accretion SBUX expects from K-Cups in year 1. As such, we are leaving our FY13E EPS unchanged at $2.19 for now."

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 $50.37 yesterday.

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