DA Davidson Initiates Coverage on Starbucks (NASDAQ:SBUX)

Stock analysts at DA Davidson assumed coverage on shares of Starbucks (NASDAQ:SBUX) in a research report issued to clients and investors on Friday,Benzinga reports. The firm set a “neutral” rating and a $97.00 price target on the coffee company’s stock. DA Davidson’s price objective would suggest a potential downside of 1.66% from the company’s previous close.

SBUX has been the subject of a number of other reports. Deutsche Bank Aktiengesellschaft restated a “buy” rating and issued a $113.00 price target on shares of Starbucks in a research report on Thursday, January 29th. William Blair upgraded Starbucks from a “market perform” rating to an “outperform” rating in a report on Thursday, January 22nd. Wells Fargo & Company set a $110.00 target price on Starbucks in a research note on Wednesday, January 28th. Royal Bank Of Canada reissued an “outperform” rating and set a $105.00 price target on shares of Starbucks in a research report on Thursday, January 29th. Finally, BTIG Research restated a “buy” rating and set a $105.00 price objective on shares of Starbucks in a research report on Thursday, January 29th. Seventeen research analysts have rated the stock with a Buy rating, ten have given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $104.22.

Starbucks Stock Performance

Shares of SBUX stock opened at $98.64 on Friday. Starbucks has a fifty-two week low of $75.50 and a fifty-two week high of $110.43. The firm has a market capitalization of $112.38 billion, a P/E ratio of 81.52, a PEG ratio of 2.17 and a beta of 0.93. The stock’s fifty day moving average is $93.43 and its two-hundred day moving average is $87.86.

Starbucks (NASDAQ:SBUX) last posted its quarterly earnings results on Wednesday, January 28th. The coffee company reported $0.56 earnings per share for the quarter, missing the consensus estimate of $0.59 by ($0.03). Starbucks had a negative return on equity of 28.66% and a net margin of 3.63%.The business had revenue of $9.92 billion during the quarter, compared to analysts’ expectations of $9.62 billion. During the same period in the prior year, the business posted $0.69 earnings per share. The business’s quarterly revenue was up 5.5% on a year-over-year basis. Starbucks has set its FY 2026 guidance at 2.150-2.400 EPS. On average, equities analysts forecast that Starbucks will post 2.99 earnings per share for the current year.

Hedge Funds Weigh In On Starbucks

A number of hedge funds have recently made changes to their positions in SBUX. Brighton Jones LLC boosted its holdings in Starbucks by 86.5% during the 4th quarter. Brighton Jones LLC now owns 176,722 shares of the coffee company’s stock valued at $16,126,000 after acquiring an additional 81,952 shares during the period. Schnieders Capital Management LLC. lifted its position in shares of Starbucks by 47.0% during the second quarter. Schnieders Capital Management LLC. now owns 3,642 shares of the coffee company’s stock worth $334,000 after purchasing an additional 1,164 shares in the last quarter. Atlantic Union Bankshares Corp boosted its stake in shares of Starbucks by 58.9% in the second quarter. Atlantic Union Bankshares Corp now owns 62,544 shares of the coffee company’s stock valued at $5,731,000 after purchasing an additional 23,173 shares during the period. Resona Asset Management Co. Ltd. grew its holdings in shares of Starbucks by 5.5% in the second quarter. Resona Asset Management Co. Ltd. now owns 370,272 shares of the coffee company’s stock valued at $33,955,000 after purchasing an additional 19,288 shares in the last quarter. Finally, HORAN Wealth LLC purchased a new stake in Starbucks during the 2nd quarter worth approximately $210,000. Hedge funds and other institutional investors own 72.29% of the company’s stock.

Starbucks Company Profile

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.