Deutsche Bank Raises Price Target#
Deutsche Bank has increased its price target for Starbucks stock (NASDAQ:SBUX) from $114 to $120 while keeping a Buy rating. This adjustment follows the company's strong performance in the second fiscal quarter, which included better-than-expected sales and earnings per share in the U.S.
Strong Quarterly Results#
Analyst Lauren Silberman noted that Starbucks is at a pivotal moment, showing signs of accelerating growth in both sales and profits. The stock has reacted positively to this news, trading at $105.96, close to its 52-week high of $104.82, and reflecting a year-to-date gain of 16%. Additionally, nine analysts have raised their earnings forecasts for Starbucks, further supporting a positive outlook.
Updated Sales Guidance#
Starbucks has also increased its guidance for same-store sales in fiscal 2026, now expecting growth of more than 5%, up from the previous estimate of over 3%. While the company’s earnings guidance suggests some caution due to temporary cost pressures, Deutsche Bank believes this reflects a conservative approach rather than a sign of underlying weakness in the business.
Analyst Sentiment#
Several other analysts have also raised their price targets for Starbucks following the strong quarterly results. BTIG increased its target to $115, citing positive customer traffic trends, while DA Davidson raised its target to $102, maintaining a Neutral rating. Piper Sandler and TD Cowen also adjusted their targets to $110 and $106, respectively, highlighting strong same-store sales growth. These changes indicate a robust sales momentum for Starbucks, as reflected in analysts' revised forecasts.