Goldman Sachs Maintains a 'Conviction Buy' on Starbucks (SBUX); Well Positioned Except in Case of Recession
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Price: $107.08 +2.97%
Rating Summary:
26 Buy, 22 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
26 Buy, 22 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Goldman Sachs maintains a 'Conviction Buy' on Starbucks (NASDAQ: SBUX) price target of $57.00 (from $63.00).
Analyst, Michael Kelter, said, "SBUX reported fiscal 3Q12 EPS of $0.43, below GS/consensus estimates of $0.45, which it attributed to a June US slowdown that has persisted into July." (FY12 EPS estimate lowered from $1.84 to $1.82, FY13 from $2.29 to $2.18 and FY14 from $2.94 to $2.79)
"While we acknowledge that SBUX’s 3Q results were not as robust as we had envisioned, we retain our Conviction Buy. We continue to believe that SBUX is well positioned heading into 2013, and unless the US economy falls into an outright recession, we believe it will outperform: (1) SBUX’s revenue growth remains in the 10-15% range, something we expect to continue into 2013 and beyond; (2) EPS growth remains in the 20% range driven by fixed-cost leverage and
a mix shift towards higher margin business; and (3) There are several company specific initiatives that will help support US SSS growth (Verismo and La Boulange and juice/tea initiatives)
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 $52.41 yesterday.
Analyst, Michael Kelter, said, "SBUX reported fiscal 3Q12 EPS of $0.43, below GS/consensus estimates of $0.45, which it attributed to a June US slowdown that has persisted into July." (FY12 EPS estimate lowered from $1.84 to $1.82, FY13 from $2.29 to $2.18 and FY14 from $2.94 to $2.79)
"While we acknowledge that SBUX’s 3Q results were not as robust as we had envisioned, we retain our Conviction Buy. We continue to believe that SBUX is well positioned heading into 2013, and unless the US economy falls into an outright recession, we believe it will outperform: (1) SBUX’s revenue growth remains in the 10-15% range, something we expect to continue into 2013 and beyond; (2) EPS growth remains in the 20% range driven by fixed-cost leverage and
a mix shift towards higher margin business; and (3) There are several company specific initiatives that will help support US SSS growth (Verismo and La Boulange and juice/tea initiatives)
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 $52.41 yesterday.
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