- Melius Research upgraded Starbucks to hold from sell after the company posted four consecutive quarters of positive global comparable-sales growth and its first year-over-year North America operating-margin expansion since early 2024.
- Starbucks raised its full-year outlook for EPS, operating margin and comparable sales, reinforcing the view that the recovery extends beyond a one-quarter rebound.
- Melius lifted its price target to $110 from $85 but retained a neutral stance because Starbucks trades at roughly 40 times expected FY26 earnings.
- Starbucks shares have risen about 25% this year, versus an 11% gain for the S&P 500, as investor confidence in the turnaround has improved.
Quotes
“The comp recovery is no longer new; it is established”
“The turnaround is real, and the price already reflects a lot of it”
“I think it’s a very serious turn.”