-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We raise our price target by $8 to $82, 30x our FY 27 (Sep.) EPS estimate and in line with its 10-year average forward multiple. We raise our FY 26 estimate to $2.26 from $2.21 and FY 27's to $2.74 from $2.64. Following FQ2 results that showed strong global comp growth acceleration to 6.2% (+710 bps), we reiterate our Sell opinion. Shares trade at 30x forward earnings, in line with their long-term average, suggesting the market expects this momentum through FY 27. Our model assumes SBUX meets its 5% global comp growth goal in FY 26, with margin expansion due to waning store investment costs, lower interest expenses, and improved international segment margins from the Boyu Capital China joint venture. We believe it will be difficult to sustain operating margin improvement on comp growth alone, with new store growth of just 0.8% in FQ3 potentially not inflecting higher until FY 28. At current valuation levels reflecting optimistic assumptions, we see limited upside and maintain our Sell rating.