Starbucks' price target raised to $110 by Bank of America, average analyst target at $93.01, and estimated GF Value at $105.12.

Bank of America has raised Starbucks' price target to $110, maintaining a Buy rating. Analysts predict an average target price of $93.01 with a high estimate of $107.00 and a low estimate of $69.00, indicating a 0.19% downside from the current price of $93.19. The company reported a total revenue of $8.8 billion with a global net new store growth of 213 coffeehouses.

Bank of America has increased its price target for Starbucks (SBUX) to $110, while retaining a Buy rating on the stock. This adjustment follows a broader review of over 20 companies within the restaurant sector, aimed at aligning with revised estimates and market multiples ahead of upcoming earnings reports [1].

Analysts' forecasts for SBUX reveal an average target price of $93.01, with a high estimate of $107.00 and a low estimate of $69.00. The consensus indicates a potential downside of 0.19% from the current price of $93.19 [1]. The average brokerage recommendation is currently 2.6, indicating a Hold status [1].

GuruFocus estimates the GF Value for SBUX at $105.12, suggesting an upside of 12.8% from the current price of $93.19 [1]. GF Value is calculated based on historical multiples and future performance estimates.

Key Business Developments

Starbucks reported a total revenue of $8.8 billion with a global net new store growth of 213 coffeehouses. The company has launched a new Green Apron service model to enhance peak throughput and customer experience, with plans to scale it to more than 2,000 US locations by the end of the fiscal year [1].

Positive Points

- Global Net New Store Growth: 213 coffeehouses.
- Green Apron Service Model: Improving peak throughput and customer experience, to be scaled to over 2,000 US locations.
- North America Recovery: Early indicators of recovery with partner engagement up and turnover dropping to a new low.
- Canadian Market Turnaround: Positive transaction growth, indicating a successful turnaround.

Negative Points

- Global Comparable Store Sales: Decline of 1%.
- Operating Margin: 8.2%, below expectations.
- Earnings Per Share (EPS): $0.41, down 38% from the prior year.
- US Market Comparable Store Sales: Decline of 2%, with transactions improving but still negative.
- China Market: Comparable store sales flat, although there are signs of progress with positive transactions and expanding margins.

Institutional Investor Activity

Verdence Capital Advisors LLC increased its stake in SBUX by 94.7% during the first quarter, owning 11,147 shares worth $1,093,000 at the end of the quarter [2]. Other hedge funds and institutional investors have also bought and sold shares of SBUX, with a significant portion of the stock currently owned by institutional investors.

Analyst Ratings and Price Targets

A number of research firms have recently weighed in on SBUX. TD Securities, Royal Bank Of Canada, Sanford C. Bernstein, Stifel Nicolaus, and Baird R W have all issued price targets and ratings for the stock, with a consensus target price of $98.85 and an average rating of Hold [2].

Conclusion

Bank of America's revised price target for Starbucks reflects a reassessment of the company's prospects. While analysts' forecasts indicate a potential downside, the company's recent business developments and institutional investor activity suggest a mixed outlook. Investors should closely monitor upcoming earnings reports and other developments to gauge the stock's future performance.

References

[1] https://www.gurufocus.com/news/2987716/starbucks-sbux-price-target-raised-by-bofa-to-110-sbux-stock-news
[2] https://www.marketbeat.com/instant-alerts/filing-verdence-capital-advisors-llc-has-109-million-stock-holdings-in-starbucks-corporation-nasdaqsbux-2025-07-18/