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Investing.com - Tigress Financial Partners resumed coverage on Starbucks Corp. (NASDAQ:SBUX) with a buy rating and a price target of $122. The target represents upside from the current stock price of $98.88, though InvestingPro data indicates the stock is currently overvalued based on its Fair Value analysis, placing it among stocks on the Most Overvalued list. The company trades at a P/E ratio of 82, reflecting premium market expectations.
The firm cited the company’s ongoing turnaround as driving operational revival, AI-driven innovation, and global expansion that are accelerating shareholder value creation.
Starbucks’ first-quarter fiscal 2026 results provided early evidence that the Back to Starbucks turnaround is delivering tangible results, according to the firm. The stock has gained 17.7% year-to-date and 20.5% over the past six months. An InvestingPro Tip highlights that the company has raised its dividend for 16 consecutive years, currently yielding 2.52%. The analyst pointed to the company’s turnaround execution, capital-efficient licensed model, and growth catalysts in store expansion and emerging markets.
The Back to Starbucks and Deep Brew initiatives highlight the company’s AI-powered coffeehouse revival, combining store upgrades, daypart and new product innovations, and capital-light global expansion, Tigress Financial said.
Starbucks continues to maximize its balance sheet and cash flow to fund growth initiatives, prioritizing customer experience, store transformation, strategic global expansion, AI-driven efficiency, and dividend-enhanced shareholder returns, the firm noted.
In other recent news, Starbucks has been the focus of several key developments. Deutsche Bank reiterated its Buy rating for Starbucks, citing a positive outlook for the second quarter with expected growth in U.S. same-store sales and earnings per share. The firm anticipates a 6% increase in U.S. same-store sales, attributing this to improved operations and strategic investments. Jefferies also upgraded Starbucks from Underperform to Hold, raising its price target to $92, following the completion of a franchising deal in China and noting a stabilizing U.S. business. Stifel maintained a Buy rating on Starbucks, highlighting the company’s China growth strategy and its joint venture with Boyu Capital to drive expansion. Additionally, Starbucks has appointed Stephen Piacentini, a former Chipotle executive, as its new coffeehouse design and development officer. This move is part of Starbucks’s broader strategy to enhance its growth under CEO Brian Niccol’s leadership. Meanwhile, a report from Jefferies noted a decline in restaurant visits in March, particularly among middle-income consumers, although this did not specifically mention Starbucks. These developments reflect Starbucks’s ongoing efforts to strengthen its market position and adapt to changing consumer dynamics.
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