BofA Raises Price Target#
BofA Securities has increased its price target for Starbucks (NASDAQ:SBUX) from $130 to $137, while maintaining a Buy rating on the shares. Currently, Starbucks' stock is trading at $105.96, suggesting a potential upside of nearly 30% based on this new target.
Strong Sales Momentum#
The firm has revised its estimates for same-store sales growth in North America for the third quarter of fiscal 2026 to 7.0%, up from a previous estimate of 4.0%. This positive change is attributed to ongoing innovation and operational improvements at Starbucks. Additionally, the overall fiscal year 2026 estimate for same-store sales growth has been raised to 5.4% from 3.9%.
International Growth#
BofA also increased its forecast for international same-store sales growth for the third quarter of fiscal 2026 to 4.0%, up from 3.3%. This increase reflects strong performance across all of Starbucks' top 10 markets, which have shown positive comparable sales.
Earnings Estimates Adjusted#
While BofA has slightly lowered its earnings estimate for the third quarter due to rising costs of goods sold, it has raised its full fiscal year 2026 earnings projection. The new expectation for earnings per share (EPS) in the third quarter is $0.62, down from $0.65, while the fiscal year 2026 EPS has been increased to $2.49 from $2.41. Positive sentiment is reinforced by nine analysts who have also revised their earnings estimates upwards for the upcoming period. However, some analyses suggest that the stock may be overvalued at its current price levels.