DA Davidson Reiterates Neutral Rating on Starbucks (SBUX) on Elevated Valuation

DA Davidson analyst Matt Curtis reiterated a Neutral rating and $110.00 price target on Starbucks (NASDAQ: SBUX).

The analyst commented, "While we remain impressed with management’s turnaround efforts that appear to have successfully repositioned Starbucks for sustainable multi-year growth, and still expect EPS to rebound strongly through FY28, an elevated valuation of 31 times our CY27 EPS estimate appears to factor in significantly steeper improvement, as the pace/level of same-store sales growth necessary to attain the better end of FY28 margin and EPS guidance (13.5-15.0% and $3.35-4.00, respectively) remaining an open question as flow-thru continues to lag historical levels. As a result, we suspect shares will remain rangebound as the stock grows into its multiple, and maintain our $110 price target."

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 $99.08 yesterday.

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