Starbucks Valuation Already Reflects Improved Sales, Oppenheimer Says

MT Newswires Live00:33

Starbucks (SBUX) has shown improved same-store sales trends, but its stock valuation appears to have reflected much of the recovery, Oppenheimer said in a report Tuesday.

"Healthier SSS trends over the last few quarters have been a welcomed dynamic as Brian Niccol and team continue to gain ground on strategic and operational shifts," the report said.

The note said market estimate of about 4% same-store sales growth for 2027/2028 is reasonable, but more powerful margin leverage or sales upside is required to drive EPS higher.

"As we analyze the setup from here, we require a path to greater earnings power to turn bullish at current valuation," the report said. Oppenheimer has a perform rating on the stock.

Price: 102.82, Change: -1.65, Percent Change: -1.58

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