Wells Fargo Maintains a 'Market Perform' on Starbucks (SBUX); Momentum Continues With Launch of Verismo
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Price: $107.69 --0%
Rating Summary:
26 Buy, 22 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 6 | Down: 5 | New: 10
Rating Summary:
26 Buy, 22 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 6 | Down: 5 | New: 10
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Wells Fargo maintains a 'Market Perform' on Starbucks (NASDAQ: SBUX) price target range raised from $41-43 to $51-53.
Wells analyst says, "Starbucks introduced the Verismo which is a premium single cup machine capable of brewing espresso-based beverages and brewed coffee. The system will be rolled out this fall, but is not expected to have a financial impact in 2012 and should incur no capex. We think Verismo should be a significant long-term growth opportunity for Starbucks' increasingly important CPG business. In addition, we think the Verismo move suggests SBUX's K-cup business may be stronger than expected - therefore, we are increasing our FY2012 EPS estimate to account for this. We increase our 2012E and 2013E EPS to $1.85 and $2.28 from $1.82 and $2.20...While we think the stock will continue to be strong on this announcement, we maintain our Market Perform rating as valuation is at the high-end of its historical range."
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.
Wells analyst says, "Starbucks introduced the Verismo which is a premium single cup machine capable of brewing espresso-based beverages and brewed coffee. The system will be rolled out this fall, but is not expected to have a financial impact in 2012 and should incur no capex. We think Verismo should be a significant long-term growth opportunity for Starbucks' increasingly important CPG business. In addition, we think the Verismo move suggests SBUX's K-cup business may be stronger than expected - therefore, we are increasing our FY2012 EPS estimate to account for this. We increase our 2012E and 2013E EPS to $1.85 and $2.28 from $1.82 and $2.20...While we think the stock will continue to be strong on this announcement, we maintain our Market Perform rating as valuation is at the high-end of its historical range."
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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