Stock Price & Analysis

Based on the recent data and market analysis, here's a concise assessment of SBUX:

Technical Analysis

The stock has shown weakness recently, with the price declining from $113.34 to $111.75 (-1.40%) on February 21st. The stock is currently trading in the upper part of a rising trend channel, suggesting potential resistance ahead.

Fundamental Analysis

• Current P/E ratio: ~27.5x
• Trading above industry average multiples
• Forward P/E: 32.8x

Recent Performance & Challenges

• Global comparable store sales declined 4% in recent quarter
• Transaction volume dropped 6%, partially offset by 2% higher average ticket
• China market showing weakness with 6% decline in comparable sales

Positive Factors

• New CEO Brian Niccol implementing turnaround strategy
• Strong brand value and global presence (39,000 stores across 80+ countries)
• Healthy dividend yield of 2.1% with consistent growth history

Risk Factors

• Rising coffee bean prices reaching all-time highs above $4/pound
• Increased competition from both traditional and new players
• Consumer sensitivity to pricing in current economic environment

Conclusion Based on current metrics and market conditions, SBUX appears to be a HOLD rather than a clear buy or sell candidate. While the company faces near-term headwinds, its strong brand and global presence provide stability. However, investors should wait for clearer signs of successful execution of the turnaround strategy before adding new positions.

Based on the provided data and market analysis, here is the price prediction for Starbucks (SBUX) stock in 2025:

Technical Analysis and Price Target

The stock is expected to reach $95-97 by end of 2025, representing a potential downside of 15-17% from current levels. This projection is based on:

1. Technical indicators showing overbought conditions with RSI at 66.84 and Stochastic K at 84.56, suggesting a likely pullback

2. The stock is trading above both its 200-day SMA ($90.69) and 250-day SMA ($90.11), indicating it may be overextended in the near term

Key Drivers

The bearish price target is supported by:

1. CEO Brian Niccol's turnaround strategy focusing on mobile ordering improvements and menu simplification may take time to show results

2. Recent pullback in DEI initiatives and potential legal scrutiny could create near-term headwinds

3. Technical resistance levels around $114-115 based on Fibonacci analysis suggest limited upside potential from current levels

The stock appears to be in a consolidation phase after its recent rally, with momentum indicators suggesting increased probability of mean reversion toward the $95-97 range by year-end 2025.

The S1 support level for SBUX Stock is $110.96 ,The R1 resistant level for SBUX Stock is $114.66.

As of the end of day on 2025-02-26, the price of SBUX Stock was $114.93.

The target price for SBUX Stock according to analyst rating is 110.70, with the highest price target at 125.00 and the lowest at 76.00. Analysts have a Moderate Buy rating on SBUX Stock overall.

The market cap of SBUX is $130.2B.

Based on the provided data and recent market analysis, here's a comprehensive evaluation of SBUX's valuation:

Technical Analysis

The stock is showing signs of being overbought with RSI readings above 70, indicating potential short-term pullback risks. The stock has risen significantly, up about 22% year-to-date, which suggests elevated valuation levels.

Fundamental Valuation

Current valuation metrics raise concerns:

• Trading at P/E ratio of 35.3x
• Forward P/E of 32.8x
• These multiples are significantly higher than the S&P 500 average

Recent Business Performance

• Q1 FY2025 showed concerning trends:
  • Global comparable store sales declined 4%
  • Transaction volumes dropped 6%
  • Net income declined 24% YoY to $780.8 million
  • EPS dropped 23.3% to $0.69

Key Challenges

1. Operational Issues:

• Declining same-store sales for fourth consecutive quarter
• Heavy reliance on price increases rather than traffic growth
• Significant competition from Dutch Bros and Luckin Coffee

2. Market Pressures:

• Rising coffee bean prices reaching all-time highs
• Continued challenges in Chinese market
• Work-from-home impact on store traffic

Analyst Consensus

Wall Street has a Moderate Buy consensus with:

• 15 Buy ratings
• 5 Hold ratings
• 1 Sell rating However, the average price target suggests potential downside risk.

Conclusion

SBUX appears overvalued at current levels due to:

1. Premium valuation multiples despite declining performance metrics
2. Significant operational challenges
3. Rising input costs
4. Competitive pressures in key markets

The stock's recent rally appears to be pricing in an optimistic turnaround scenario that may take longer than expected to materialize.

Starbucks Corporation is a coffee company engaged in sourcing and roasting arabica coffee. The Company has more than 38,000 stores worldwide and is the roaster and retailer of specialty coffee in the world. It operates through three segments: North America, which is inclusive of the United States and Canada; International, which is inclusive of China, Japan, Asia Pacific, Europe, Middle East and Africa, Latin America, and Caribbean; and Channel Development. Its North America and International segments include both Company-operated and licensed stores. Its Channel Development segment includes roasted whole bean and ground coffees, Starbucks and Teavana-branded single-serve products, a variety of ready-to-drink beverages, such as Frappuccino and Starbucks Doubleshot, foodservice products and other branded products sold worldwide outside of Company-operated and licensed stores. It also sells goods and services under various brands, including Teavana, Ethos, Starbucks Reserve and Princi.

Based on the provided data and recent market analysis, here's a projection for Starbucks (SBUX) stock price in 2030:

Starbucks stock is projected to reach approximately $175-185 by 2030, driven by the company's successful implementation of its turnaround strategy under CEO Brian Niccol and expected global market expansion. The price target factors in the company's historical growth patterns, current valuation metrics, and strategic initiatives to improve operational efficiency and digital engagement, though ongoing challenges with rising coffee bean prices and international market competition could create some headwinds.

SBUX has a total of 381000 employees.