Starbucks (SBUX) PT Lowered to $105 at UBS as Shares Already Reflect Improved Momentum

UBS analyst Dennis Geiger lowered the price target on Starbucks (NASDAQ: SBUX) to $105.00 (from $112.00) while maintaining a Neutral rating.

The analyst commented, "Starbucks’ growth momentum and outlook have improved meaningfully as execution of the “Back to Starbucks” strategy gains traction, driving stronger US transaction trends and a return to solidly positive comp sales momentum. In order to assess the sustainability of recent sales momentum, as well as current brand perceptions and identify key drivers of future traffic growth, we analyzed insights from the UBS Evidence Lab 2026 Global Coffee Survey and US QSR Survey. Results suggest Starbucks continues to benefit from strong positioning across several key brand attributes that are important to driving customer visits. Operational initiatives, digital enhancements, and menu innovation appear to be resonating with customers. While survey respondents also highlighted key traffic / spending pressures somewhat constraining sales growth, we were encouraged by improving brand perceptions and still positive net visit intent over the next 12 months. We expected solid US sales momentum should continue, but in our view, shares already reflect a solid multiyear sales and earnings recovery, with a balanced risk / reward profile at current levels based on a reasonable valuation and the upper end of (or above) the FY28 target earnings range."

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