Piper Jaffray Recommends Buying Starbucks (SBUX) on Momentum and Valuation

Piper Jaffray analyst Nicole Miller Regan reiterated an Overweight rating and $63 price target on Starbucks (NASDAQ: SBUX) saying they are buyers considering momentum and valuation.

Regan commented, "Considering execution that yields solid momentum as well as valuation, we are buyers of SBUX shares. We expect strong fiscal 4Q15 results, and we continue to project a +6.4% global comp. Our increased $0.43 per share estimate ($0.42 prior) is in line with both the high-end of the guided range as well as Street consensus. We reiterate our Overweight rating and $63 price target. Each 1x in EBITDA multiple equates to ~$3/share. Our longterm thesis remains centered on proven global brand equity and an accelerating assetlight growth model, both of which generate strong cash flow in support of continued reinvestment into the business and an ongoing commitment to capital allocation."

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 $55.37 yesterday.

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