Wells Fargo Upgrades Starbucks (SBUX) to Outperform; Entering New Era of Growth

February 7, 2014 6:46 AM EST
Get Alerts SBUX Hot Sheet
Price: $126.06 +0.07%

Rating Summary:
    28 Buy, 17 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 25 | Down: 37 | New: 115
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Wells Fargo upgraded Starbucks (NASDAQ: SBUX) from Market Perform to Outperform with a price target of $88.00 (from $75.00) and raises its valuation range to $87.00-$89.00 from $74.00-$76.00.

"We hosted investor meetings with SBUX's management team in San Francisco yesterday (2/6) and came away incrementally more positive on SBUX’s near- and long-term growth prospects," analyst Bonnie Herzog said. "In attendance was Troy Alstead, COO, Scott Maw, CFO, JoAnn DeGrande, VP Investor Relations, and Greg Smith, Senior Manager, Investor Relations. Overall, we have more conviction that SBUX’s increased focus and discipline will propel the company into a new era of faster growth and innovation."

She added, "Further, we continue to be impressed with: (1) SBUX’s strong execution of multiple initiatives in the U.S., (2) its tremendous potential to become an international powerhouse, (3) its impressive loyalty programs and digital offerings, and (4) its long runway for growth in CPG both in the U.S. and internationally where we believe it's just getting started."

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 $72.36 yesterday.

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