Analysts are upbeat about Starbucks earnings, and that mood carries over to the stock.
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Starbucks didn’t deliver the caffeinated sales that Wall Street wanted in the first quarter. Now, the coffeehouse chain gets another chance to deliver a jolt when it reports second-quarter results after the bell on Tuesday.
Investors are predicting that the economic reopening will fuel a rally, and analysts are standing with them. Shares of Starbucks (ticker: SBUX) were down 1.65%, to $115.62, in afternoon trading Monday.
An end to the pandemic will help companies across the board, but analysts argue that Starbucks is an especially well-positioned recovery play since more people will be getting breakfast on the go as they return to offices and schools, and its cafes will be open once again for dine-in customers. The outlook in China is also brightening.
Analysts are looking for Starbucks to earn 53 cents a share, on revenue of $6.78 billion. That’s up from EPS of 32 cents and revenue of $6 billion in the year-ago period.
And the upbeat mood carries over to the stock. Of the 33 Starbucks analysts tracked by FactSet, 58% rate the stock at Buy and 42% at Hold. There are no bearish ratings on the Street. The average analyst price target is $118.57.
Starbucks will hold a conference call at 5 p.m. EDT on Tuesday.
Write to Teresa Rivas at [email protected]
