UBS Group Forecasts Strong Price Appreciation for Starbucks (NASDAQ:SBUX) Stock

Starbucks (NASDAQ:SBUX) had its price target upped by investment analysts at UBS Group from $105.00 to $112.00 in a report issued on Thursday. The firm presently has a “neutral” rating on the coffee company’s stock. UBS Group’s price objective would indicate a potential upside of 7.55% from the company’s current price.

Other research analysts have also recently issued reports about the company. Morgan Stanley reaffirmed an “overweight” rating and set a $111.00 price objective (up from $110.00) on shares of Starbucks in a research note on Wednesday, July 15th. Deutsche Bank Aktiengesellschaft restated a “buy” rating on shares of Starbucks in a report on Wednesday, April 29th. Robert W. Baird raised their price target on Starbucks from $112.00 to $117.00 and gave the stock an “outperform” rating in a research report on Wednesday, April 29th. Piper Sandler reaffirmed an “overweight” rating and issued a $110.00 price target on shares of Starbucks in a research note on Wednesday, April 29th. Finally, Stephens assumed coverage on Starbucks in a research report on Thursday, May 14th. They issued an “overweight” rating for the company. Nineteen equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, Starbucks has a consensus rating of “Moderate Buy” and an average target price of $110.58.

Starbucks Stock Performance

SBUX stock opened at $104.14 on Thursday. The company has a market capitalization of $118.69 billion, a PE ratio of 78.89, a price-to-earnings-growth ratio of 2.05 and a beta of 0.98. Starbucks has a one year low of $77.99 and a one year high of $109.23. The company’s 50 day moving average price is $102.15 and its two-hundred day moving average price is $98.92.

Starbucks (NASDAQ:SBUX) last announced its quarterly earnings data on Wednesday, July 29th. The coffee company reported $0.85 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.66 by $0.19. The company had revenue of $9.32 billion during the quarter, compared to analysts’ expectations of $9.17 billion. Starbucks had a net margin of 3.89% and a negative return on equity of 29.24%. The firm’s revenue was down 1.4% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.50 EPS. Starbucks has set its FY 2026 guidance at 2.550-2.650 EPS. On average, research analysts predict that Starbucks will post 2.41 EPS for the current year.

Insiders Place Their Bets

In other Starbucks news, CEO Brady Brewer sold 2,229 shares of the business’s stock in a transaction on Monday, July 6th. The shares were sold at an average price of $104.00, for a total transaction of $231,816.00. Following the transaction, the chief executive officer directly owned 77,364 shares of the company’s stock, valued at approximately $8,045,856. The trade was a 2.80% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 6,687 shares of company stock valued at $679,033 in the last quarter. Insiders own 0.03% of the company’s stock.

Hedge Funds Weigh In On Starbucks

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. boosted its position in Starbucks by 0.9% during the 4th quarter. Vanguard Group Inc. now owns 114,410,675 shares of the coffee company’s stock valued at $9,634,523,000 after acquiring an additional 971,773 shares in the last quarter. Capital World Investors lifted its stake in shares of Starbucks by 9.0% in the 4th quarter. Capital World Investors now owns 84,727,405 shares of the coffee company’s stock valued at $7,135,228,000 after purchasing an additional 7,007,268 shares during the period. State Street Corp boosted its position in shares of Starbucks by 0.7% during the fourth quarter. State Street Corp now owns 47,869,056 shares of the coffee company’s stock valued at $4,031,053,000 after purchasing an additional 327,161 shares in the last quarter. Geode Capital Management LLC boosted its position in shares of Starbucks by 0.9% during the fourth quarter. Geode Capital Management LLC now owns 26,373,084 shares of the coffee company’s stock valued at $2,212,153,000 after purchasing an additional 225,168 shares in the last quarter. Finally, T. Rowe Price Investment Management Inc. grew its stake in Starbucks by 65.9% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 19,447,854 shares of the coffee company’s stock worth $1,637,704,000 after purchasing an additional 7,725,547 shares during the period. Hedge funds and other institutional investors own 72.29% of the company’s stock.

Key Headlines Impacting Starbucks

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Strong customer demand: Global comparable-store sales rose 7.9%, exceeding the 5.7% consensus estimate, as comparable transactions increased 4.2%. North American revenue climbed 7% to approximately $7.4 billion. Faster service, new products and expanded food offerings appear to be bringing customers back. Starbucks Reports Q3 Fiscal Year 2026 Results
• Positive Sentiment: Earnings beat and raised guidance: Adjusted earnings were $0.85 per share versus the $0.66 analyst consensus, while revenue of $9.32 billion exceeded expectations of roughly $9.17 billion. Starbucks raised fiscal 2026 adjusted EPS guidance to $2.55–$2.65 from $2.25–$2.45 and now expects full-year global comparable sales growth of 6%. The guidance increase relies primarily on higher customer traffic rather than price increases. Starbucks raises full-year forecasts again
• Positive Sentiment: China operations less risky: The conversion of Starbucks’ China business into a licensed joint venture reduced reported revenue, which declined 1.4% year over year, but the transaction may reduce execution and capital risks in the market. International margins also improved. Starbucks: Upgrading to Hold
• Neutral Sentiment: Analyst views remain generally favorable: Analysts’ consensus rating is “Moderate Buy,” although at least one research report upgraded the stock only to “Hold,” reflecting a more balanced risk-reward view after its strong run.
• Negative Sentiment: Valuation and execution risks: With shares near their 52-week high and trading at an elevated earnings multiple, investors may demand continued improvement. Starbucks is still working to ensure food availability and maintain faster service, while weaker dividend coverage and recent insider selling add cautionary signals.

About Starbucks

Starbucks Corporation is a global coffeehouse chain and roaster that operates, licenses and franchises coffee shops and related retail businesses. Founded in Seattle, Washington in 1971 by Jerry Baldwin, Zev Siegl and Gordon Bowker, the company grew from a single store focused on whole-bean coffee and equipment into a broad consumer-facing brand. Howard Schultz, who joined the company later and served in senior leadership roles, is widely credited with transforming Starbucks into a mass-market specialty coffee retailer and expanding its footprint internationally.

Starbucks’ core activities center on the retail sale of hot and cold specialty beverages, whole-bean and packaged coffees, teas and ready-to-drink products, along with complementary food items and merchandise such as mugs and brewing equipment.