Starbucks stock gains after analysts upgrade

6:13 PM 11 October 2021

Starbucks (SBUX.US) stock rose 1.5% during today's session after BofA Securities and Deutsche Bank analysts labeled the world's biggest coffee chain with a pair of buy ratings.

BofA resumed its coverage of the stock with a $135 target as "growth in the specialty coffee segment continues to outpace that of overall foodservice globally and in the US." Starbucks is one of the few that have been able to build scale and thus derived supra-competitive returns and the impact of smaller concepts, including those with high growth, will be limited in the near term, according to BofA. Despite the strong earnings in the US, headwinds in China - where Starbucks is rapidly opening new locations - are driving the current valuation in the stock. But China concerns appear overstated, as prior economic slowdowns in the country had less of an impact on Starbucks than its local competitors, BofA argued.

Deutsche Bank upgraded the company's rating  to buy from hold while keeping the price target at $127,citing the company's "incredible" momentum in the U.S., attractive valuation, as well as its prospects of continued unit growth in China. 

Starbucks (SBUX.US) stock launched today's session sharply higher however buyers failed to break above resistance zone around $113.85  and price pulled back below earlier broken downward trendline and 23.6% Fibonacci retracement of the last downward wave. If current sentiment prevails, support at $110.45 may be at risk. Source: xStation5

Share:
Back

Join over 1 600 000 XTB Group Clients from around the world

The financial instruments we offer, especially CFDs, can be highly risky. Fractional Shares (FS) is an acquired from XTB fiduciary right to fractional parts of stocks and ETFs. FS are not a separate financial instrument. The limited corporate rights are associated with FS.
This page was not created for investors residing in Brazil. This brokerage is not authorized by the Comissão de Valores Mobiliários (CVM) or the Brazilian Central Bank (BCB). The content of this page should not be characterized as an investment offer in Brazil or for investors residing in that country.
Losses can exceed deposits