• Investing
  • Stock
  • Editor’s Pick
  • Economy
The Significant Deals
Stock

Starbucks earns a new positive rating as RBC starts coverage at buy

by November 15, 2024
written by November 15, 2024

Investing.com — RBC Capital Markets started research coverage on Starbucks (NASDAQ:SBUX) shares with an Outperform rating, setting a price target of $115.

The investment bank views Starbucks as “one of the most recognized brands in the US that has faced several headwinds recently, many of which the company can control.”

“The company has an opportunity to meaningfully re-accelerate the business,” analyst Logan Reich added.

He believes that Starbucks’ US business, despite experiencing difficulties in fiscal year 2024, is poised for recovery under the guidance of new CEO Brian Niccols.

Reich suggests that the company can improve its customer experience by improving wait times and offering better value through pricing strategies. Investments in increasing store efficiency, such as implementing a four-minute wait time goal, are expected to be beneficial, even if they may dilute margins in the short term.

RBC anticipates that while Starbucks will need to make near-term investments to revitalize its business, these efforts could lead to faster-than-expected margin expansion in the second half of fiscal year 2025.

The firm points out that some investments were already underway and others may be temporary, which signals potential for a quicker return to growth.

Moreover, the coffeehouse operator’s supply chain and in-store savings of 250 basis points in fiscal year 2024 provide a buffer for further investments and might lead to consensus-beating results in 2026.

Looking beyond the US market, Reich remains positive about Starbucks’ long-term prospects in China.

Despite recent economic challenges, the analyst believes there is a significant opportunity for growth driven by urbanization, the expanding middle class, and increasing coffee consumption.

“We acknowledge the path forward will likely be volatile but believe the bar is low,” he continued. “Further, a partnership in China could reduce what’s been an overhang on the business which we think would be an incremental positive.”

This post appeared first on investing.com
0 comment
0
FacebookTwitterPinterestEmail

previous post
Disney nears tipping point as streaming profits start to offset cable decline
next post
GM laying off nearly 1,000 workers, most in US, source says

You may also like

BASF results down on impairments, restructuring

January 27, 2025

European chipmakers slump as traders gauge DeepSeek AI...

January 27, 2025

Nasdaq futures tumble as China’s AI push rattles...

January 27, 2025

China Vanke’s CEO, chairman resign amid growing liquidity...

January 27, 2025

Fuji Media, rocked by sexual misconduct allegations, says...

January 27, 2025

Italy’s MPS shares fall ahead of Mediobanca board...

January 27, 2025

British Land stock drops following stake sale

January 27, 2025

UMG shares rally after new multi-year pact with...

January 27, 2025

BASF shares indicated 3% lower as impairments drag...

January 27, 2025

Ryanair cuts 2026 traffic forecast amid ongoing Boeing...

January 27, 2025
Fill Out & Get More Relevant News








    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • Spirit Airlines files for Chapter 11 bankruptcy protection for the second time in a year

      August 30, 2025
    • Retail panic: What the end of the ‘de minimis’ exemption means for brands across the globe

      August 29, 2025
    • Cracker Barrel rebrand: Why companies retreat when faced with consumer criticism

      August 29, 2025
    • Trump accused Fed governor Lisa Cook of mortgage fraud. That can be hard to prove, experts say.

      August 29, 2025

    Categories

    • Economy (245)
    • Editor's Pick (3,646)
    • Investing (626)
    • Stock (6,426)

    Latest News

    • Spirit Airlines files for Chapter 11 bankruptcy protection for the second time in a year
    • Retail panic: What the end of the ‘de minimis’ exemption means for brands across the globe

    Popular News

    • Tech stocks hurt STOXX 600, ASML logs biggest one-day drop in 26 years
    • Earnings call: Watts Water Technologies reports mixed Q3 results

    About The Significant deals

    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 thesignificantdeals.com | All Rights Reserved

    The Significant Deals
    • Investing
    • Stock
    • Editor’s Pick
    • Economy