Starbucks Serving the Re-emerging Global Demand for Coffee

As world economies roar back to life and people return to work, the demand for coffee is expected to follow. The Starbucks Corp. (SBUX) is well poised to continue capturing this market, Read More... The post Starbucks Serving the Re-emerging Global Demand for Coffee appeared first on TipRanks Financial Blog.

Starbucks Serving the Re-emerging Global Demand for Coffee

As world economies roar back to life and people return to work, the demand for coffee is expected to follow. The Starbucks Corp. () is well poised to continue capturing this market, as it is emerging from the COVID-19 pandemic well ahead of its competitors in regards to cash flow and a loyal customer base. (See SBUX stock chart on TipRanks)  

Ivan Feinseth of Tigress Financial Partners published a report on the matter, optimistically stating that he expects a “massive uptick in growth,” driven by reemerging post-pandemic demand and strong business trends. Factors he highlighted included Starbucks' innovative digital investments, impressive penetration into the Chinese market, and a successful new loyalty rewards program.  

Feinseth reiterated a Buy rating on the stock, and assigned a price target of $130, suggesting a possible upside of 18.51%.  

The five-star analyst wrote that Starbucks has recently made updates to its customer experience by including app and kiosk-based ordering platforms to its stores. In the background, the company has streamlined inventory and supply chain processes with machine learning and predictive intelligence. 

Feinseth was quick to note that Starbucks has maintained consistent dividend growth since it started paying dividend, in 2010. He expects the company to make share repurchases in the future. In turn, that would push the stock price upward.  

Additionally, Starbucks has successfully penetrated the Chinese market for coffee, aided by a nascent middle class and millennial-based demand. This was a particularly impressive achievement, as China’s culture had and does revolve around tea. At the moment, Starbucks has 1,000 stores in 15 different cities across the world’s most-populous country.  

In the U.S., encouraging growth has been identified as of late. Feinseth wrote that “Q2 same-store sales in the U.S. increased 9%, highlighting a full post-pandemic sales recovery.” He expects more store openings and further investments in technology for its customers. One such improvement is the Stars for Everyone loyalty rewards program, which has swelled membership to record numbers and expanded the company’s extremely devoted customer base.  

On TipRanks, SBUX has an analyst rating consensus of Moderate Buy, based on 15 Buy and 8 Hold ratings. The average analyst Starbucks price target is $125.38, reflecting a potential 12-month upside of 14.29% from Friday’s closing share price of $109.70.

Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment. 

The post Starbucks Serving the Re-emerging Global Demand for Coffee appeared first on TipRanks Financial Blog.

Source : Tip Ranks More   

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Is Amazon Stock a Buy Ahead of Prime Day? This Is What You Need to Know

Amazon’s (AMZN) Prime Day will kick off early this year, taking place at the start of the week, on June 21-22 (Monday and Tuesday), instead of in July (apart from Read More... The post Is Amazon Stock a Buy Ahead of Prime Day? This Is What You Need to Know appeared first on TipRanks Financial Blog.

Is Amazon Stock a Buy Ahead of Prime Day? This Is What You Need to Know

Amazon’s (AMZN) Prime Day will kick off early this year, taking place at the start of the week, on June 21-22 (Monday and Tuesday), instead of in July (apart from last year’s pandemic-dictated October event).

The shopping festivities will include over 2 million deals for the 200 million strong Prime subscribers across the globe. However, non-Prime members can also enjoy the Prime Day Show event streamed on Amazon Prime Video. This three-episode event remains available for 30 days with segments dedicated to Billie Eilish, H.E.R. and Kid Cudi. Making the most of Amazon’s interplay between ecommerce and media, to mark the event, Billie Eilish also launched merchandise exclusively on Amazon.

While millions across the globe are set to participate in the promotional shopping extravaganza, the event coincides with more scrutiny of Big Tech.

Last week, the House Judiciary Committee’s Antitrust Subcommittee drafted five bills intended to curtail the influence of Amazon and its fellow tech giants Alphabet, Facebook and Apple.

While segments of each bill could have consequences for all four companies, Monness’ Brain White believes “some bills appear more consequential than others.”

“In our view,” the 5-star analyst said, “The ‘Ending Platform Monopolies Act’ appears highly relevant to Amazon. The act is designed, ‘To Promote competition and economic opportunity in digital markets by eliminating the conflicts of interest that arise from dominant online platforms’ concurrent ownership or control of an online platform and certain other businesses.’ Also, the ‘Platform Competition and Opportunity Act’ and the ‘American Choice and Innovation Online Act’ appear pertinent to Amazon.”

How these will affect the company in the long-term is unknown, but for now, White believes Amazon stock’s middling performance of late is no reflection of its real-world strength. After the pandemic-driven “surging demand,” White believes the ecommerce leader is “uniquely positioned to exit this crisis as one of the biggest beneficiaries of accelerated digital transformation.”

Accordingly, White has a Buy rating on Amazon shares, backed by a $4,500 price target. Investors could be sitting on gains of 29%, should White’s thesis prove correct. (To watch White’s track record, )

White thinks Amazon stock is due to break out of the past few months’ range-bound display, and so do the rest of Wall Street’s analyst corps. The stock has a Strong Buy consensus rating based on a unanimous 32 Buys, while the $4,297.58 average price target indicates gains of 23% could be in store over the following months. (See Amazon stock analysis on TipRanks)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

The post Is Amazon Stock a Buy Ahead of Prime Day? This Is What You Need to Know appeared first on TipRanks Financial Blog.

Source : Tip Ranks More   

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