Consumer discretionary

Starbucks Corporation (SBUX) Stock Review – RBC Capital

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The stock is not much appealing to dividend seeking investors

Analyst David Palmer at RBC Capital maintained outperform rating for Starbucks Corporation (NASDAQ:SBUX) stock in his research note. The rating in stock rating came ahead of company’s Biennial Analyst Day, which is scheduled to take place next week.

The analyst stated in his note that his data points towards a slow and sluggish start to the fiscal year. He believes that the consumer confidence is improving and the recent marketing tools deployed by the company could help in boosting its Same Store Sales (SSS) to witness a growth through the quarter end.

The analyst kept Price Target of $64 intact for the stock, presenting an upside potential of 10.27% from the current price of $58.04. The analysts at the Street seem to be bullish, with 14 out of 31 analysts at the Street rating it as Strong Buy, while 12 analysts presenting Buy rating. The consensus Price Target estimate for the stock is $64.12, with the highest and lowest target of $70.00 and $55.00 respectively.

Stock’s Year-to-Date (YTD) performance has been highly volatile, with a return of 3.35% in YTD trading. However, it started to gauge interests of investors, and increased by 10.51% in the past one month of trading.

The stock is not much appealing to dividend seeking investors, who require a high yield. Rather, it is more prone to be attracted by dividend growth investors. In the past five years, its growth has witnessed an increase by 284%. In each of the five years, it has witnessed an increase. Even in its quarterly results reported on November 3, it witnessed an increase of 25% on Quarter-over-Quarter (QoQ) basis. At price level of $55.77, the stock delivered a lucrative dividend yield of 1.79%.

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