-- Starbucks (SBUX) is expected to maintain solid sales momentum on its turnaround strategy, though investor focus is shifting toward margin recovery in H2, UBS said in a note on Wednesday.
The brokerage said strong transaction-driven comparable sales growth in Q2 reflected improvements in operations, menu innovation and updated loyalty program.
Looking ahead, UBS said continued execution on initiatives such as afternoon beverage platforms, loyalty enhancements, store closures and operational improvements should support sales into H2.
UBS also expects margin expansion later in the year, supported by sales leverage, cost savings and easing pressures from tariffs and coffee costs.
UBS raised the price target on the stock to $105 from $100 but maintained a neutral rating.
Price: $106.10, Change: $+8.82, Percent Change: +9.06%