Starbucks (NASDAQ:SBUX) Given New $110.00 Price Target at Morgan Stanley

Starbucks (NASDAQ:SBUX) had its price objective boosted by Morgan Stanley from $105.00 to $110.00 in a research note released on Wednesday morning, MarketBeat Ratings reports. The brokerage currently has an overweight rating on the coffee company’s stock.

A number of other equities research analysts also recently weighed in on the company. Royal Bank Of Canada reaffirmed a “sector perform” rating and set a $110.00 price objective (up from $105.00) on shares of Starbucks in a research report on Wednesday. Dbs Bank raised Starbucks from a “strong sell” rating to a “moderate sell” rating in a research report on Friday, March 20th. Bank of America set a $114.00 price objective on Starbucks in a research report on Wednesday, January 21st. Wolfe Research initiated coverage on Starbucks in a report on Monday, March 9th. They issued a “peer perform” rating for the company. Finally, Zacks Research raised Starbucks from a “strong sell” rating to a “hold” rating in a report on Tuesday, January 27th. Sixteen investment analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, Starbucks has a consensus rating of “Moderate Buy” and a consensus price target of $106.93.

Starbucks Price Performance

Shares of SBUX stock opened at $105.50 on Wednesday. Starbucks has a 1-year low of $75.50 and a 1-year high of $107.27. The stock’s 50-day moving average is $96.34 and its 200 day moving average is $90.85. The company has a market cap of $120.20 billion, a P/E ratio of 87.19, a PEG ratio of 2.08 and a beta of 0.95.

Starbucks (NASDAQ:SBUX) last issued its quarterly earnings data on Tuesday, April 28th. The coffee company reported $0.50 earnings per share for the quarter, beating analysts’ consensus estimates of $0.44 by $0.06. Starbucks had a negative return on equity of 28.66% and a net margin of 3.63%.The company had revenue of $9.53 billion for the quarter, compared to the consensus estimate of $9.09 billion. During the same quarter last year, the company earned $0.41 earnings per share. The firm’s revenue for the quarter was up 8.8% compared to the same quarter last year. Starbucks has set its FY 2026 guidance at 2.250-2.450 EPS. On average, analysts anticipate that Starbucks will post 2.31 EPS for the current year.

Starbucks Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, May 29th. Stockholders of record on Friday, May 15th will be paid a $0.62 dividend. This represents a $2.48 annualized dividend and a dividend yield of 2.4%. The ex-dividend date is Friday, May 15th. Starbucks’s dividend payout ratio (DPR) is presently 187.88%.

Insider Activity

In other news, EVP Sara Kelly sold 2,500 shares of the firm’s stock in a transaction dated Thursday, March 5th. The stock was sold at an average price of $97.12, for a total value of $242,800.00. Following the completion of the transaction, the executive vice president directly owned 59,609 shares in the company, valued at $5,789,226.08. This trade represents a 4.03% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CEO Brady Brewer sold 1,641 shares of the firm’s stock in a transaction dated Thursday, March 5th. The stock was sold at an average price of $97.12, for a total value of $159,373.92. Following the completion of the transaction, the chief executive officer owned 86,605 shares of the company’s stock, valued at approximately $8,411,077.60. The trade was a 1.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 6,958 shares of company stock valued at $667,464. Company insiders own 0.03% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the company. Frank Rimerman Advisors LLC lifted its holdings in Starbucks by 2.5% in the first quarter. Frank Rimerman Advisors LLC now owns 12,333 shares of the coffee company’s stock valued at $1,105,000 after acquiring an additional 305 shares during the period. Montag A & Associates Inc. grew its stake in shares of Starbucks by 27.1% during the 1st quarter. Montag A & Associates Inc. now owns 13,603 shares of the coffee company’s stock worth $1,219,000 after purchasing an additional 2,900 shares during the period. Navalign LLC increased its holdings in shares of Starbucks by 3.2% during the 1st quarter. Navalign LLC now owns 13,723 shares of the coffee company’s stock valued at $1,229,000 after purchasing an additional 422 shares in the last quarter. Resonant Capital Advisors LLC increased its holdings in shares of Starbucks by 8.8% during the 1st quarter. Resonant Capital Advisors LLC now owns 7,526 shares of the coffee company’s stock valued at $674,000 after purchasing an additional 610 shares in the last quarter. Finally, United Asset Strategies Inc. lifted its stake in shares of Starbucks by 41.3% in the 1st quarter. United Asset Strategies Inc. now owns 143,162 shares of the coffee company’s stock valued at $12,826,000 after purchasing an additional 41,863 shares during the period. 72.29% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Starbucks

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Q2 beat and outlook lift — Starbucks reported $0.50 EPS (vs. ~$0.44 consensus), $9.53B revenue, and raised FY26 EPS guidance to $2.25–2.45, giving the market a classic “beat‑and‑raise” catalyst. Starbucks Reports Q2 Fiscal Year 2026 Results
• Positive Sentiment: Traffic and comps recovery — global comps rose ~6% (U.S. comps ~7%), evidence the turnaround is driving return visits and mix improvement that can drive future margin leverage as revenue scales. Starbucks tops quarterly sales estimates as CEO’s turnaround gains momentum
• Positive Sentiment: Investments in labor and stores appear to be working — management says roughly $500M of investments in staffing, scheduling and benefits helped speed service and win customers back. That supports sustainable top‑line improvement if service gains persist. Starbucks is winning customers back after investing $500 million in workers and stores
• Positive Sentiment: Wall Street is revising forecasts upward — multiple firms raised price targets and issued buy/overweight notes after the quarter, which amplifies buy-side momentum. Starbucks To Rally More Than 18%? Here Are 10 Top Analyst Forecasts For Wednesday
• Neutral Sentiment: Corporate hub spending and relocation questions — Starbucks plans a $100M Nashville hub; it’s a strategic move but adds near‑term corporate spend and raises relocation/ execution noise. Starbucks CEO on new $100 million Nashville hub
• Neutral Sentiment: Competitive landscape — fast‑food rivals (e.g., McDonald’s) are pushing more drinks/options; it’s a watch item for market share and pricing power but not an immediate earnings shock. McDonald’s takes aim at Starbucks with new drinks menu
• Negative Sentiment: Margins under pressure — Reuters and company commentary note that rising labor, gas and utility costs from the turnaround investments have compressed North American store margins; profit recovery may lag revenue growth. Starbucks customers are coming back. Profits haven’t caught up yet.
• Negative Sentiment: Some sell‑side caution remains — BNP Paribas/other firms still express conservative views (one maintained an underperform stance with a lower price target), highlighting differing views on how quickly margins recover. Benzinga

Starbucks Company Profile

Starbucks Corporation is a global coffeehouse chain and roaster that operates, licenses and franchises coffee shops and related retail businesses. Founded in Seattle, Washington in 1971 by Jerry Baldwin, Zev Siegl and Gordon Bowker, the company grew from a single store focused on whole-bean coffee and equipment into a broad consumer-facing brand. Howard Schultz, who joined the company later and served in senior leadership roles, is widely credited with transforming Starbucks into a mass-market specialty coffee retailer and expanding its footprint internationally.

Starbucks’ core activities center on the retail sale of hot and cold specialty beverages, whole-bean and packaged coffees, teas and ready-to-drink products, along with complementary food items and merchandise such as mugs and brewing equipment.