UBS Maintains a 'Buy' on Starbucks (SBUX); Raising Estimates & PT As Sales Momentum Continues

UBS maintains a 'Buy' on Starbucks (NASDAQ: SBUX) price target raised from $52 to $61.

UBS analyst said, "We are raising our price target to $61 and our above-consensus FY13 and FY14 EPS estimate from $2.40 and $2.80 to $2.42 (+28 YOY) and $2.90 (+20% YOY). Our new estimates reflect 1) higher sales growth as a result of strong ongoing momentum and single serve push in F.Y13, 2) lower coffee costs in FY13, and 3) improving margins in Europe...We are raising our F2Q SSS estimate from 7.5% to 8.0% based on the results of our proprietary consumer panel through February...We are forecasting 24%, 28% and 20% EPS growth in fiscal 2012, 2013 and 2014 as Starbucks’ pursues multiple avenues of growth."

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 $53.55 yesterday.

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