STOCKS | Stifel Resumes Starbucks Coverage With Buy Rating, Sets $115 Price Target

On November 9, Stifel resumed research coverage of Starbucks with a Buy rating and a $115 price target, implying about 9.1% upside from the November 6 closing price of $105.41. According to Sina Finance, Stifel expects Starbucks’ EBITDA to return to double-digit growth in fiscal 2027 as comparable sales improve and margins recover; it said operating leverage from sales growth and cost savings may offset increased spending on employee investment and store-experience improvements. Stifel also cited a sound balance sheet, leverage below 3x including lease liabilities, and a dividend yield of about 2.4%. It based its price target on 21 times forecast fiscal 2027 EBITDA, in line with its discounted cash flow valuation; Starbucks’ current forward enterprise value-to-EBITDA ratio is about 23.8x, and its price-to-earnings ratio is about 47.6x. The firm said future earnings growth and margin improvement are important supports for the company’s valuation.