Starbucks (SBUX) Is Killing It and Will Continue To - Goldman Sachs
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Price: $86.21 --0%
Rating Summary:
21 Buy, 25 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 13 | New: 14
Rating Summary:
21 Buy, 25 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 13 | New: 14
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Goldman Sachs reiterated their Conviction Buy List rating and $62 price target on Starbucks (NASDAQ: SBUX) following solid Q4 results and raised 2013 guidance. The firm said as fundamentals are in strong shape and there are several 2013 catalysts upcoming.
The firm notes US SSS accelerated to 7% while many others experienced a slowdown. The 1Q13 Verismo single serve launch and 3Q13 improved food platform should keep the momentum going, the firm said.
Goldman also expects the company's Asian division to grow by 30%-40% in 2013 as it accelerates new unit expansion. The division may reach 20% of profits within five years, they note.
In addition, the firm sees potential for 300-400bp of operating margin expansion over the next two years as the company benefits from offee cost deflation, fixed cost
leverage and a mix shift towards its higher margin Asian and CPG businesses.
Goldman tweaked 2013/2014/2015 EPS estimates to $2.18/$2.77/$3.31
For an analyst ratings summary and ratings history on Starbucks click here. For more ratings news on Starbucks click here.
Shares of Starbucks are up 9.9 percent to $51.25.
The firm notes US SSS accelerated to 7% while many others experienced a slowdown. The 1Q13 Verismo single serve launch and 3Q13 improved food platform should keep the momentum going, the firm said.
Goldman also expects the company's Asian division to grow by 30%-40% in 2013 as it accelerates new unit expansion. The division may reach 20% of profits within five years, they note.
In addition, the firm sees potential for 300-400bp of operating margin expansion over the next two years as the company benefits from offee cost deflation, fixed cost
leverage and a mix shift towards its higher margin Asian and CPG businesses.
Goldman tweaked 2013/2014/2015 EPS estimates to $2.18/$2.77/$3.31
For an analyst ratings summary and ratings history on Starbucks click here. For more ratings news on Starbucks click here.
Shares of Starbucks are up 9.9 percent to $51.25.
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